NFT, NonFungible takes stock of the market

What is happening to the NFT market for the second quarter of 2022? Are the NFTs dead? The media that praised him last year have now kept quiet. The NFT market is not dead, but it has become much more difficult to make a profit. A look at NonFungible.com’s second quarter 2022 NFT report

Second quarter 2022: global NFT statistics

Overall, the NFT market has experienced a sharp decline from the first quarter of 2022. However, the data is still significantly higher than last year’s volumes over the same period.

The volume of dollars traded amounts to 8 billion against 10 billion for the first quarter of 2022, or a decrease of 25%. The volume of the number of sales also decreased. With ten million in sales, this represents a 20% drop from the start of the year.

Unfortunately, the number of Active Portfolios (portfolios that have bought or sold an NFT in this period) is not reassuring, even these have decreased by 33% to reach 1.2 million portfolios.

However, the volumes of these three indicators remain ten times higher to those of the second quarter of 2021.

The most worrying data comes mainly from realized profits and losses: 46% less realized profit and a 23% increase in recorded loss sales. In addition to the drop in the price of ETH, how do you explain these various losses?

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Situations of the NFT segment

Weekly evolution of profits by segments. Source: NonFungible.com

According to the report, the segment of collectibles it recorded the most loss-making sales but also the one that posted the highest profit this quarter. This segment mainly includes the Profile picture (PFP) such as Bored Ape Yacht Club or CryptoPunks.

NonFungible does not find it surprising that this sector is the most affected by the phenomenon of resale at a loss, as Collectibles have historically been the most speculative assets on the market.

Despite a decrease of 16%They collectibles however stay the most profitable segment with $ 256 million in profits achieved despite loss-making resales representing $ 100 million a week. On the other hand, the report also notes that Yuga Labs projects account for 30% of the USD volume collectibles.

Volume traded in USD per segment. Source: NonFungible.com

For their part, the virtual worlds have seen their volume increase by 15%. They represent 20% of the total USD volume traded on the NFT market. The profit spike in April was due to the sale of land from Otherdeed.

The other notable increase is that of segment of Utilityto which it owes much of its success Ethereum name service (ENS). During the month of July, a strong interest has arisen around ENS three or four digits.

With a drop in volume ranging from $ 673 million to $ 430 million, the artistic sector he is the least affected by the falls this quarter. For the first time, there were more loss-making than profitable resales in this industry with approximately $ 5 million in resales below the purchase price. That said, art collectors keep their NFTs longer. During this quarter, the average period of socket increased by 44% at 39 days.

And the video game ? The report shows less active portfolios (-22%), less volume traded in USD (-2%) and less sales volume (-22%). These figures should be put into perspective because NonFungible only takes Ethereum and Ronin into account in their data. This provides an overview of the video game market. However, many interactions take place off-chain and on other blockchains.

Conclusion of this report

With a significant movement of liquidity ranging from collectibles To the Utilitythe least we can say is that the NFT market has evolved a lot in a quarter!

The number of active NFT smart contracts has increased significantly (+ 29%), suggesting that more and more projects are being created using this new medium of exchange. Some users are disappointed with broken promises (get rich quick). However, the report recalls that the NFT ecosystem was built in the midst of the 2018 bear market.

“Profits are made during the Bull Market. But it is usually during Bear Markets that real value is produced. “

Yes, the media coverage and euphoria are not the same as last year. But it also allows you to better focus on realistic goals and prepare for the next bull run!

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