In line with the cooling fervor around non-fungible tokens (NFTs), a substantial contraction in the value of stolen NFTs was observed in July, marking a downtrend that echoes a broader decrease in NFT trading activity across the market.
The recent analysis by blockchain security firm, PeckShield, reveals a significant 31% reduction in the value of stolen NFTs last month, amounting to approximately $1.73 million. This marks a colossal 89% fall from the peak value of $16.2 million registered in February. June saw around $2.27 million worth of NFTs stolen.
A key finding from PeckShield’s report indicates that half of the pilfered NFTs found buyers within a mere 165 minutes. The primary marketplace for these speedy transactions was Blur, one of the leader in Ethereum NFT marketplace by monthly volume.
PeckShield’s revelation about the rapid resale of stolen NFTs demonstrates the challenges in recovering a stolen NFT. Given that NFTs represent unique digital assets tied to various forms of artwork and intellectual property, their theft can have far-reaching implications for artists, collectors, and investors alike.
#PeckShieldAlert In July 2023, ~$1.73M worth of #NFTs were stolen, marking a 31% decrease compared to the previous month. Within a span of 165 minutes, half of the stolen NFTs were promptly sold on various marketplaces. The percentage of stolen NFTs initially sold on @blur_io… pic.twitter.com/cknsefpfwe
— PeckShieldAlert (@PeckShieldAlert) August 6, 2023
This downturn in the value of stolen NFTs aligns with the noticeable contraction in NFT trading volumes. In July, the trading volume slumped over 17%, suggesting a cooling interest in this crypto niche.