NFT Volume Declines Sharply But Cheaper Sales Are ‘Extremely Important for Long Term Growth’
With hype calming down and wallets trading cheaper NFTs, the market can now grow in a greed-free environment with more people and organizations coming in. It’s basically good for “more sustained” market development.
After exploding into popularity this year, non-fungible tokens’ growth has entered a slow-down phase in the past month or so.
If we look at the past 30-days statistics of the NFT space, it has experienced a huge drawdown.
Starting with the marketplace, the popular ones like OpenSea, CryptoPunks, Axie Infinity, NBA Top Shot, and Rarible have had their volume down 40% to 60% in the past 30-days. The number of traders has also dropped between 20% to 50%, as per DappRadar.
The volume on these marketplaces peaked in February. For instance, the most popular one, NBA Top Shot, did $48 million on Feb 22, and now it is down at $1.3 million though still up from less than 10k it was doing in December.
This year, besides the DeFi ecosystem, the NFT market is one of the big ways the blockchain industry continues to develop.
But in May, a decrease of 5% in sales volume was recorded, the volume dropped for the second month in a row. Flow and Wax particularly drove this.
Overall, the trend of highly-priced NFTs seems to be cooling off, with relatively cheaper sales now fueling the market activity. However, such sales are “extremely important for long term growth as it gives a chance to attract masses to the industry.”
I dont know whether NFTs are really ded, but in general new trends that are suddenly proclaimed ded are sometimes very good risk:reward opportunities. https://t.co/GrpmjRfSJm pic.twitter.com/d5tiQr7xUR
— 🃏Fiskantes 1(Ω, 三)7 (@Fiskantes) June 4, 2021
Despite the negative trend, Axie Infinity, Dark Country, and R-Planet had the best month this year so far, with their month-on-month growth of 201%, 659%, and 141%, respectively. Additionally, wallet activity and the count of sales saw an upward trend.
Well-known people like Paris Hilton, Eminem, Jack Dorsey, and many others have also joined in on the NFT trend, with more and more new organizations starting to test the NFT waters as well. Dapp Radar noted in its May report,
“It indicates that NFT hype has calmed down, at least in terms of large sales, and wallets are trading cheaper NFTs. As a result, this situation might lead to a more sustained stage of market development instead of one that’s filled with hype and greed.”