An article within the Wall Avenue Journal has claimed gross sales of nonfungible tokens (NFTs) are “flatlining” — in the identical week that the highest 5 collections alone accounted for greater than $1 billion in major and secondary gross sales.
The article cited knowledge from NFT market evaluation platform Nonfungible suggesting the variety of NFT gross sales has fallen by 92% since an all-time excessive in September 2021. Wallets lively within the Ethereum NFT market have been additionally stated to have declined by 88% since a excessive in November 2021.
“The NFT market is collapsing,” the article concluded.
Nonetheless, on-chain knowledge from Dune Analytics’ dashboard counsel that the NFT market continues to be strong, with data exhibiting that NFT customers and transactions are a lot increased than what’s reported by Nonfungible.
Analytics additionally present that quantity per day in United States greenback on Ethereum NFTs over the week is among the highest seen since February, with common market OpenSea seeing almost $550 million in quantity on Sunday alone.
Evaluation from Tom Schmidt, companion at enterprise capital agency Dragonfly Capital, reveals an identical story when targeted on OpenSea transactions and USD quantity.
come on, man pic.twitter.com/CTJFldAHNk
— Tom Schmidt (@tomhschmidt) May 3, 2022
Subsectors inside the NFT market are rising, and whereas some areas of the oversaturated market are in a downturn, others are seeing main positive aspects.
Nansen’s analytics platform, which indexes NFT collections by kind, reveals that “Blue Chip” NFTs — established and extremely prized manufacturers such because the Bored and Mutant Ape Yacht Membership and Azuki tokens — are far outperforming artwork or gaming tokens.
The Nansen Blue Chip-10 Index monitoring the highest 10 NFT initiatives is up 81% yr thus far (YTD), whereas comparatively, the indexes monitoring the highest artwork and gaming NFT collections are respectively down 39% and 49% YTD.
This phenomenon of NFT market capital consolidating into the highest collections was identified in an evaluation by NFTstatistics.eth, which shared a chart in late April exhibiting the highest 5 collections are driving the Ethereum NFT market.
This pattern continues: BAYC, Azuki, CloneX, Doodles & now Moonbirds separating themselves from everybody else.
I’ve talked about large-caps outperforming, however it’s actually the top-5 initiatives driving all of the positive aspects. pic.twitter.com/UsUlwHMJ9M
— NFTstatistics.eth (@punk9059) April 26, 2022
“There’s clearly a pattern proper now that 5 or 6 of probably the most profitable initiatives are sharply outperforming whereas the remaining are flat to down,” pseudonymous NFT market analyzer NFTstatistics.eth advised Cointelegraph.
Associated: OpenSea top-10 NFT initiatives soar as new liquidity enters the market
The info from Nonfungible reveals a spike on Sunday with the variety of gross sales and lively wallets that day hitting numbers not seen of their knowledge from November 8, 2021, straight correlating with the record-breaking (and Ethereum breaking) Otherside metaverse land sale by Yuga Labs once more contradicting the declare that NFT gross sales are “flatlining.”
It’s not clear why the Nonfungible knowledge the WSJ relied on is misaligned with Dune’s knowledge. Nonetheless, it could possibly be because of the inclusion of gross sales quantity from the play-to-earn (P2E) sport Axie Infinity by Nonfungible.
Quantity for the favored play-to-earn hit an all-time excessive of over $40 million on November 4, 2021, earlier than a gradual decline to its present ranges of round $500,000, according to CryptoSlam knowledge.
However, the collapse in reputation of a P2E sport, as NFTstatistics.eth stated that it “is a particularly completely different message from ‘NFTs are collapsing.’”
@DJohnson_CPA means that AxieInfinity was so huge it dominated numbers in November and has since collapsed. Appears attainable.
From the place I sit, that is a particularly completely different message from “NFTs are collapsing”https://t.co/lq66GbhbAj
— NFTstatistics.eth (@punk9059) May 3, 2022
Whereas the present debate focuses on Ethereum NFTs, Solana is quick changing into a preferred blockchain for the sort of asset and is the second-largest blockchain behind Ethereum for NFT gross sales quantity.
Final week, the Solana NFT challenge “Okay Bears” topped OpenSea’s 24-hour gross sales tracker for the primary time and holds fourth place behind the Mutant Ape Yacht Membership in seven-day gross sales quantity on CryptoSlam with over $47 million value transacted.
The journalist is a writer and digital nomad. Loves thinking, learning, and writing about all things Web3, particularly its impact on major creative industries.