The world of non-fungible tokens (NFTs) has witnessed a decline in thefts, offering much-needed respite to NFT enthusiasts. Recently released data by Peckshield, a leading blockchain security firm, reveals a significant drop of 31% in NFT thefts during the month of July 2023.

Throughout this year, NFT thefts have posed a persistent threat, causing concern within the community. However, the latest report by Peckshield not only highlights a decline in July but also showcases an impressive 81% decrease from the peak of NFT thefts in February 2023 until now.

The report indicates that stolen NFT assets worth $1.73 million were recorded in July, while February witnessed a shocking $16.2 million worth of NFTs being stolen. What is particularly alarming is the speed at which these stolen assets were converted into cash on various NFT marketplaces. Within just over two hours, half of the stolen NFT assets were transported and sold, fetching an equivalent amount of money.

Among the NFT marketplaces involved, blur.io, an NFT marketplace on the Ethereum mainnet, witnessed 67.3% of the stolen NFTs being sold. OpenSea, the world’s largest NFT marketplace, accounted for 19.63% of the sales, while the X2Y2 NFT marketplace made up over 10% of the transactions.

Despite this momentary relief, it is crucial for the NFT community to remain vigilant, as approximately $40 million worth of NFTs have already been stolen this year. The Federal Bureau of Investigation (FBI) recently issued a public service announcement to raise awareness of the escalating financial cyber attacks targeting the NFT community. They urged victims to report suspicious activities and fraudulent individuals, emphasizing the importance of controlling and reducing NFT scams.

Interestingly, the decline in NFT thefts may be linked to a slump in sales and wavering market sentiment. NFTs have become less lucrative investments compared to their peak popularity and profitability witnessed in late 2020 and earlier this year.

Industry analysts suggest that the decrease in demand and sales volume has resulted in declining profitability, subsequently leading to a reduction in NFT thefts. CryptoSlam, a global NFT multi-chain data aggregator, reported a substantial 40% plunge in NFT sales volume in the previous month. Daily sales, which touched a high of $22 million in early July, have now dropped significantly to $13 million.

Additionally, NFT trading volume has experienced a notable decline, decreasing by 29% in July. Earlier this year, NFT trading volume reached an impressive $1 billion in January, but now hovers around $600 million, nearly halving its value.

Moreover, popular NFT collections such as Yuga Labs, Bored Ape Yacht Club, and Crypto Punks have witnessed remarkable shifts in terms of sales and trading patterns.

While the decline in NFT thefts brings some relief to NFT investors and collectors, it is essential for the community to remain cautious and continue adopting robust security measures. By reporting suspicious activities and collaborating with authorities, the NFT community can strive towards creating a safer and more trustworthy ecosystem for digital asset transactions.

As the NFT market evolves, it is imperative for stakeholders to stay informed and adapt to the changing landscape, ensuring the long-term viability and sustainability of this revolutionary technology.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.