NFT: Is the industry collapsing now?

In August, sales on the global NFT market fell again to below 1 billion. 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 that collectors make from the sale and airdropping of digital art received via airdrops.

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

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

An image from CryptoSlam.io

The NFT top collections are also seeing significantly fewer buyers

Much of the dwindling sales can be attributed to the massive drop in the number of buyers 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, raised about $5.7 million from 44,558 buyers.

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

Only 103 users bought CryptoPunks and brought in $25 million in revenue. Mutant Ape Yacht Club (MAYC) remained under $50 million for the fourth month in a row 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 be increased.

Until now, Dapper Labs’ NBA Top Shot has consistently brought huge liquidity to the global NFT market. In August, however, the digital art collection fell below $15 million in total sales. This indicates a significant decrease in the number of buyers, which caused the average purchase price to drop to $16.64.

The latest numbers do not compare to the $848 million in sales that Axie Infinity recorded in August 2021. These numbers also do not compare to the $298 million and $679 million generated by BAYC and CryptoPunks in the same period last year. The MAYC and NBA Top Shots monkey NFTs also had significantly higher sales during the period at $277 million and $37 million, respectively.

Sales fall to an 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-financial world. However, that number is up $79.5 million (12%) from July.

An image from CryptoSlam.io

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.

An image from CryptoSlam.io

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

An image from CryptoSlam.io

NFT marketplace volume continues to decline

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

Competing platform Magic Eden even took only 66.31 million US dollars. The negative market sentiment 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 reached a new high of $5.63 billion.

An image from theBlock.co

Disclaimer

All information on our website has been investigated 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 on our website is entirely at his own risk.

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