Second Quarter 2022 NFT Market Report

In recent times, the cryptocurrency market has experienced a significant decline. This situation is affecting many companies, causing them to go out of business. Furthermore, this downward trend is also affecting the NFT sector. Statistical analysis firm NunFungile.com conducted a survey to assess the performance of this sector in the second quarter of 2022. Here’s the gist of this study.

Dollar trading volume drops 25%

Between the first (Q1) and second (Q2) of this year, the amount of dollars traded on the NFT market lost a quarter of its value. In fact, it was estimated at about $ 8 billion in the second quarter, compared to $ 10.73 billion in the first quarter. However, the decline is not just in dollar-denominated trading volume, but in most market performance metrics. In particular, the number of buyers (-25.41%), sellers (-35.88%) and, even more interestingly, the number of NFT sales in the year (-20.05%). At the same time, Yuga Labs, a publisher of NFT projects, takes over about 30% of the total sales volume. This percentage is distributed among the various projects that the company is carrying out to date. The rest of the market is provided by other major ecosystem players and by resale between individuals. However, although the market is currently in decline, interest in NFTs remains quite high.

Second quarter sales volume

460 million cumulative profit

The NonFungible report shows that despite the slowdown in the NFT market, a cumulative profit of $ 461 million was recorded during the second quarter. This is achieved by subtracting total resale losses ($ 1.43 billion) from resale gains ($ 1.89 billion). Although this result is positive, it is still a significant decrease compared to the result obtained in the first quarter, when it was equal to 2.35 billion dollars. This corresponds to a decrease of 77.35%. This difference may be justified by the decrease in investments made and the decrease in buyers.

Falling profits and rising losses

Similarly, it can be observed that total profit in the second quarter decreased by 46% and the total loss in the same period increased by 23%, compared to the first quarter. This is because many NFT holders are forced to sell their assets at a loss under bear market pressure. Therefore, NonFungible data reveals that NFT trading can generate up to $ 162 million in losses per week, compared to a profit of $ 27 million over the same time frame. This represents more than $ 100 million in cumulative losses recorded on a weekly basis. That said, the accumulated losses in other sectors (metaverse, game…) Are less significant, not exceeding 10 million dollars a week.

Weekly evolution of the volume of profits and losses during the resale of NFT

Secondary market dominance

The report shows a concentration of total dollar transactions in the secondary market relative to the primary market according to an 80-20 ratio. In terms of sales volume, however, there is a certain balance between the two market segments. Furthermore, due to the decline in demand, few NFT projects saw the light in the second quarter. In fact, the overall supply only increased by 4%. However, the primary market sales volume is still just as strong, with over 600,000 sales recorded in early June.

Sales volume and dollars traded for primary and secondary markets (2nd quarter 2022)

Considering all the above data, the conclusion that can be drawn about the situation of the NFT markets in the second quarter of this year is obvious. The latter suffered a real decline compared to the previous quarter. On the other hand, it fared better than the cryptocurrency industry and worse than the industry gamemetaverse and blockchain utilities.

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Junie MAFFOCK avatar

Junie MAFFOCK

I came to the blockchain out of curiosity and stayed there for passion. I was amazed at the possibilities it offers through its various use cases. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.

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