In July, the volume of NFT theft witnessed a significant decline, dropping by 20% compared to the previous month. This information comes from a study conducted by PeckShield, a blockchain security company. The study revealed that the total value of stolen NFTs in July amounted to $1.73 million, which was a 20% decrease from June’s figure of $2.27 million. Furthermore, it represented an astounding 89% drop from the record-breaking $16.2 million in stolen NFTs reported in February.
The research by PeckShield mainly focused on the monetary value of the stolen NFTs and also shed light on the quick turnaround by hackers. Interestingly, within just 165 minutes of being stolen, half of the pilfered NFTs were already sold on various marketplaces. The report provided insights into the platforms used for these transactions, with Blur marketplace being the primary one, responsible for 67.3% of the initially stolen NFTs being sold, followed by OpenSea at 19.63%.
This decline in NFT thefts could be partially attributed to the overall decrease in NFT sales witnessed in recent months, including July. According to DappRadar, a platform that tracks decentralized applications (dApps), the NFT market’s volume and revenues fell by 29% and 23% monthly, respectively. This trend was evident in major NFT collections like Bored Ape Yacht Club and Azuki, which saw their lowest floor prices in nearly two years, indicating a struggling market.
The NFT landscape has undergone a significant shift, with trading volumes dropping from $1.1 billion in January to $600 million in July, marking the third consecutive month with trading volume below $1 billion. The popular marketplace, Blur, experienced a 32% decrease in transactions and a 44% decrease in volume compared to the previous month. OpenSea also witnessed a 25% decline in transactions during the same period, as reported by DappRadar.
Despite the overall downward trend, there were positive developments, particularly the increased trading activity on the Polygon network, which accounted for 27% of all NFT deals in July.
However, the NFT community faced growing concerns over financial fraud and theft. The FBI issued a warning after observing a troubling rise in fraudulent activities targeting NFT enthusiasts. Cybercriminals were found to impersonate authorized NFT developers to defraud unsuspecting consumers.