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NFT: Is the industry collapsing now?

 


In August, sales in the global NFT market fell below the $1 billion mark again. The declining number of buyers had a negative impact on the average retail value of digital collectibles.


Between July 2021 and May 2022, the total sales of the global NFT market reached a new milestone . This is due to the huge profits made by collectors from the sale and airdropping of digital art received via airdrops. 


Unfortunately, like all areas of the crypto financial industry, NFTs have been hit extremely hard by the bearish market trends since late March. 


As a result, global NFT market revenue fell below $1 billion for the third straight month in August . According to CryptoSlam data , the industry only achieved a total revenue of $726.78 million.

The NFT top collections are also seeing significantly fewer buyers

Much of the dwindling sales can be attributed to the massive decline in buyer numbers as well as the average sales value of the top 10 NFTs by total sales volume . 


For example, Axie Infinity, the top NFT by sales volume , fetched around $5.7 million from 44,558 buyers. 


The collection of digital monkey images, the Bored Ape Yacht Club (BAYC), attracted interest from 263 buyers and generated total sales of $58 million, surpassing even CryptoPunks for the project.


Just 103 users bought CryptoPunks and brought in $25 million in revenue. Mutant Ape Yacht Club (MAYC) remained below $50 million for the fourth straight month with revenue of $25.8 million and 744 buyers. Otherdeed, from the Otherside Metaverse, eventually attracted interest from just 1,934 buyers and grossed $22 million in August. After the monthly sales record of 943 million US dollars in May, the project could no longer increase. 


Until now, Dapper Labs' NBA Top Shot has consistently brought tremendous liquidity to the global NFT market. However, in August, the Digital Art Collection fell below $15 million in total sales . This indicates a significant drop in buyer numbers, which caused the average purchase price to drop to $16.64.


The latest figures do not compare to the $848 million in sales that Axie Infinity recorded in August 2021. Nor do these numbers compare to the $298 million and $679 million generated by BAYC and CryptoPunks over the same period last year. The MAYC and NBA Top Shots monkey NFTs also had significantly higher sales over the period of $277 million and $37 million, respectively.   


Sales plunge to annual low worldwide 

Many market analysts see the low $726 million in revenue as an indication that the NFT industry is losing its status in the crypto finance world . However, that figure is an increase of $79.5 million (12%) from July.

A total of 613,021 buyers with 4.57 million transactions spent an average of $1,075.01 on Bored Apes, Mutant Apes, CryptoPunks, Axie Infinity in-game NFTs, Azuki, CloneX, NBA Top Shots and others.

The 495,666 buyers and average sale value of $132.33 in August 2022 represent a decrease of 19% and 87%, respectively, from the staggeringly high numbers of the previous year.

NFT marketplace volume hit a new low in August with revenue of $613.41 million . OpenSea, the largest marketplace by volume, recorded approximately $501 million in volume.


The competing platform Magic Eden even took only 66.31 million US dollars. The negative market mood for digital collectibles is particularly evident in the current statistics. This market sentiment has resulted in the NFT platforms generating less than $1 billion in total volume over the past three months (June to August). 


In January, NFT marketplaces hit a new high of $5.63 billion.  

Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

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