The once-dominant NFT marketplace OpenSea is experiencing a significant decline in user activity, reaching its lowest levels since 2021. While OpenSea was previously hailed as the leading platform in the NFT space, newer competitors like Magic Eden and Blur are now capturing more attention and activity.

According to data from Token Terminal, OpenSea's NFT trading volumes have dropped by 33% over the past 30 days, now totaling $89 million. Additionally, the platform's weekly user base has decreased to approximately 21,000 traders.

This decline has brought OpenSea's trading levels back to where they were in 2021, a period characterized by lower NFT activity. In April, monthly user numbers dipped to around 73,000, the lowest since August 2021. At its peak, OpenSea boasted over 500,000 monthly active users, highlighting the recent challenges it faces in maintaining its competitiveness.

Despite the overall increase in NFT trading volumes, OpenSea is struggling to maintain its position as much of the activity shifts to competitors like Blur and Magic Eden. Sales volume on OpenSea has also fallen, with the number of NFTs sold in April dropping to 134,197, the lowest since June 2021.

Monthly trading volumes have similarly decreased, falling below $100 million this year for the first time. During its prime, OpenSea's monthly volumes approached $5 billion. This decline has notably impacted revenue, with fees charged remaining high despite rising Ethereum prices. However, these fees have not improved OpenSea's revenue outlook, as royalty fees hit a record low in April.

The emergence of Blur and Magic Eden has intensified the pressure on OpenSea, which now holds the third position in the industry with about 9.5% of the total NFT trading volume. Blur dominates with over 67% market share, followed by Magic Eden with over 14%.

In light of these challenges, OpenSea CEO Devin Finzer has hinted at the possibility of selling the company, acknowledging the struggles the platform faces in a rapidly evolving marketplace.