NFT volume is dropping sharply, but cheaper sales are “extremely important to long-term growth.”
With the hype subsided and portfolios trading in cheaper NFTs, the market can now thrive in a greed-free environment with more people and organizations coming in. This is fundamentally good for “more sustainable” market development.
After a sharp rise in popularity this year, the growth of non-fungible tokens has entered a slowdown over the past month.
If we look at the statistics for the last 30 days of NFT space, we see a huge drop.
Starting from the market, the volume of the most popular ones such as OpenSea, CryptoPunks, Axie Infinity, NBA Top Shot and Rarible have dropped from 40% to 60% over the past 30 days. According to DappRadar, the number of traders has also dropped from 20% to 50%.
The peak in sales at these sites was in February. For example, the most popular, the NBA Top Shot, grossed $ 48 million on February 22nd and is now down to $ 1.3 million, but still higher than in December.
This year, in addition to the DeFi ecosystem, the NFT marketplace is one of the main vehicles through which the blockchain industry continues to grow.
But in May there was a 5% decline in sales volumes, which fell for the second month in a row. In particular, Flow and Wax have led to this.
Overall, the trend towards high-priced NFTs appears to be slowing, with relatively cheaper sales now fueling market activity. However, such sales are “extremely important to long-term growth as they help attract masses to the industry.”
I don’t know if NFTs are actually selling, but in general, suddenly announced new trends sometimes represent a 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 have posted their best month this year so far, with 201%, 659% and 141% monthly growths respectively. In addition, there is a trend towards an increase in portfolio activity and the number of sales.
Notable people like Paris Hilton, Eminem, Jack Dorsey and many more have also joined the NFT trend, and more and more new organizations are starting to test NFT water as well. Dapp Radar noted in its May report,
“This indicates that the NFT hype has died down, at least in terms of significant sales, and that wallets are trading in cheaper NFTs. As a result, this situation can lead to a more sustainable stage in the development of the market, rather than a stage filled with hype and greed. “
AnTy has been continuously involved in the crypto space for over two years. Prior to her blockchain debut, she worked with the NGO Doctor Without Borders as a fundraiser and has since studied, read and created for various segments of the industry.