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NFT Fails To Hit $1 Billion In Monthly Trades For The First Time Since June 2021

NFT Fails To Hit $1 Billion In Monthly Trades For The First Time Since June 2021

NFT Fails To Hit $1 Billion In Monthly Trades For The First Time Since June 2021

NFT Fails To Hit $1 Billion In Monthly Trades For The First Time Since June 2021

Since the beginning of the crypto winter, which has seen significant selloffs from the bulk of the crypto assets we have seen so far, many have indicated that the NFT market has lost its attraction and has been on a bearish trend for the past four months. Data from DappRadar shows that the NFT transaction volume failed to reach $1 billion, as it registered roughly $900 million, in July 2022, due to the lack of interest and investments pouring into the field. This most recently occurred in June 2021.

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That the NFT market is currently experiencing a historically unfavorable time is not breaking news. The drop in the value of cryptocurrencies has a significant impact on prices, reduced liquidity, and a modest potential profit from resale. As a result, a lot of users have chosen to sell their holdings in the NFT market, holding them until conditions are better or switching to positions known as “holdings” to prevent trading until the “crypto winter” is over.

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NFT Fails To Hit $1 Billion In Monthly Trades For The First Time Since June 2021

The market is shrunk, with a fall of 25% MoM, according to the assessed trade volumes. Additionally, the number of traders has declined by 8% MoM while increasing by 40% from July 2021. The four projects controlled by Yuga Labs—CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, and Otherdeed for OtherSide—which together accounted for more than $160 million in trades in July—absolutely dominate the market. In other words, throughout the overall trading volume of July 2022, Yuga Labs represents just over 20% of the entire NFT market.

What you should know

  • Recent trends have enabled the explosion of utilities, mainly Ethereum Name Service domain names, with $20 million in total trading volume in the past 30 days.
  • Most Bored Ape Yacht Club members have begun purchasing the four-digit domain name corresponding to the Ape they own. This number matches approximately the domain name of the brand that their Ape carries.
  • In these bear market times, where trade is concentrated on one asset class, the report explained that there is a hyper-centralization of activity as blue-chip NFT collections retain most of their value.
  • Despite the decline in the NFT trading volumes, NFT Marketplaces have continued to expand despite the market downturn. We are witnessing the emergence of two new marketplaces: the GameStop NFT Marketplace, which debuted on July 11, 2022 and Nickelodeon’s NFT marketplace, launched on July 19, 2022.
  • The GameStop NFT Marketplace is a non-custodial marketplace built on Ethereum Layer-2-based blockchain technology known as the Loopring Layer-2 scaling solution. In its first two days of operation, the GameStop NFT marketplace surpassed the Coinbase NFT marketplace. Since the launch, the total trading volume of the top 50 collections is approximately $12 million. The CYBER CREW [C4] collection is the leader in sales volume, with 3,000 ETH.

    NFT Fails To Hit $1 Billion In Monthly Trades For The First Time Since June 2021

  • Also, the launch of Nickelodeon’s NFT marketplace has been a great success; it witnessed over $2 million in total volume in less than three weeks. The marketplace now exclusively sells the first-ever drop of Nickelodeon NFTs, “Nickelodeon: Rugrats & Hey Arnold!,” which has done more than 1,700 ETH ($2.89 million) in total volume via OpenSea, the leading NFT marketplace in the industry. The collection sold out in less than ten minutes during the presale and the general sale. The sale price was $50, and the collection’s floor price is currently $94.
  • While the entry of new competitors has made things harder, OpenSea still remains the dominant marketplace, even though its market share has fallen from 84% in May to the current 58.6% measured in July.
  • The dominance of OpenSea has unquestionably diminished as the NFT market matures and becomes more competitive, with volume increasing in X2Y2, Solana’s Magic Eden, and Ethereum’s Foundation, which focuses on NFT artworks. Despite this, it is safe to say that OpenSea’s presence will remain dominant for months to come.
  • The report also reveals that the gaming sector is defying the bear market trend with almost 1 million daily Unique Active Wallets (UAW) and $857 million in transactions. The report explained that the top blockchain games retain their player base, demonstrating genuine engagement at the top of the charts.
  • Metaverse and blockchain-based gaming ventures continue to garner increasing venture capital. It is worth mentioning that the dominance of games for the UAW has increased from 52% to 57.39% MoM, a very bullish trend for this category.

Despite the fact that the NFT market’s transaction volume fell short of the billion mark in July 2022, there are still benefits related to gaming, metaverse, and ecosystem construction. But crypto, NFT, and web3 are still operational and will continue to be so, the paper said. One may see this catastrophe as a hasty market realignment that has weeded out risky “ponzinomics” businesses that wouldn’t have stood the test of time. It’s time to fortify yourself. Successful initiatives will lay the groundwork for a great bull run.


IBEH C. JOE

Financial analyst, Entrepreneur, Blogger and Business model

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