The prominent NFT marketplace, OpenSea, is currently grappling with a notable reduction in user engagement, plummeting to its lowest levels since 2021. Once revered as the primary hub in the NFT domain, fresh contenders such as Magic Eden and Blur have emerged on the scene, garnering increased attention and participation from users.

Recent statistics from Token Terminal reveal a substantial 33% decline in OpenSea's NFT trading volumes over the past month, now recording a sum of $89 million. Not only that, but the platform's weekly user base has dwindled to around 21,000 traders, painting a picture of dwindling activity and interest.

The regression in performance has effectively pushed OpenSea's trading figures back to those of the year 2021, a time marked by subdued NFT interactions. In the month of April, the count of monthly users nosedived to roughly 73,000, marking the lowest since August 2021. Previously, during its peak, OpenSea basked in the glory of hosting over 500,000 monthly active users, underscoring the recent hurdles it confronts in upholding its competitive edge.

Despite the overall surge in NFT trading volumes industry-wide, OpenSea finds itself grappling to retain its stronghold as a significant portion of the market dynamics veer towards rival platforms like Blur and Magic Eden. Sales figures on OpenSea have seen a decline, manifesting in a drop to 134,197 NFTs sold in April, the lowest since June 2021.

Monthly trading volumes have likewise experienced a downturn, dipping below the $100 million mark for the first time this year. In its heyday, OpenSea's monthly figures had soared close to $5 billion. This nosedive has notably reverberated across revenue streams, with the platform's fees, despite scaling high amidst escalating Ethereum prices, failing to ameliorate the revenue projections. Moreover, royalty fees encountered a record low in the month of April, painting a bleak picture for OpenSea's financial prospects.

The rise of Blur and Magic Eden has further compounded the challenges for OpenSea, relegating it to the third spot in the industry with a mere 9.5% share of the overall NFT trading volume. Blur boasts a commanding 67% market dominance, closely trailed by Magic Eden with a stake exceeding 14%.

Faced with the mounting pressures and constraints, OpenSea's CEO, Devin Finzer, has hinted at the potentiality of selling the company, acknowledging the hurdles the platform encounters in the swiftly evolving marketplace.