Recently published report suggests a major downtrend in NFT sales. This led to calls of a worrying NFT market sentiment which are gradually being quashed after big performances recently.
Nonfungible released a report on the performance of the NFT market during the first quarter of 2022. The report raised many eyebrows after its release, indicating a culture of NFT burnout.
The first quarter of 2022 has seen some worrying trends in the NFT market. There has been a 46% fall in the number of NFT sales. Moreover, the daily average sales have dropped to 19,000 per week, a 92% decline from a peak of about 225,000 in September 2021.
There has also been an almost 30% drop in the number of buyers for NFT, which is attributed to two reasons. The number of active traders has dropped from almost a million accounts towards the end of 2021 to around 491,000, as reported by NBC. With the flood of supply, there are about five NFTs for every buyer according to Chainalysis. The lack of scarcity, it seems, has contributed to the downfall of NFTs.
Another developing trend is the 50% increase in total losses upon resell. One of the infamous examples is the attempted sale for an NFT of Jack Dorsey’s first tweet. He paid a reported $2.9 million in March 2021 for it and expected the resale to touch around $25 million. But, with a top bid of $6800, his efforts to sell it have run aground.
But what about this data?
The Non-Fungible report suggested a scathing examination of the NFT market in the first quarter of 2022. But the latest data acquired from CryptoSlam points to a different trend for NFT performance as we enter May 2022.
In the previous 30 days, several leading blockchains have handled astronomical NFT sales volume. Ethereum is the leading blockchain, with Solana a distant second followed by Flow, Polygon and Avalanche.
Ethereum saw 66% growth in NFT sales to $3.9 billion. Much of it is made up of the “Otherdeed” and “Moonbirds” collections with their total sales valued at $1.3 billion. Solana has accumulated a sales volume of 325 million dollars after a 50% increase. The top NFTs on this network are “Okay Bears” and “DeGods” valued at around $100 million.
Finally, the NFT global index by sales volume increased by 60% to $4.44 billion. The NFT market did drop towards the beginning of the year but is slowly gathering pace as the numbers indicate here.
