NFT sales plummet

After a record period, sales of non-fungible tokens are at an all-time low.

Collapsing prices, bankruptcies … The year 2022 is a pivotal year for digital assets, such as Bitcoin. And this period, dubbed the “crypto winter”, does not spare NFTs who are facing a decline in value and volume.

By definition, “NFT” is the abbreviation for the English term “Non Fungible Token”. It means in French “non-fungible token”. Unlike tokens such as Bitcoin or Ethereum which are fungible, therefore equivalent to each other and undifferentiated, NFTs are “non-fungible”, therefore unique.

The curve plunges

The last positive curve appeared last April. Recall that the sale of the new project by Yuga Labs, the studio of the famous NFT Bored Ape Yacht Club, had managed to congest the Ethereum blockchain. At the time, sales of 61,000 NFTs had earned an average of $ 83 million. Since July, that figure has dropped to $ 29 million and sales are plummeting. While the number of sales in May was 3.9 billion dollars, in June it was more than 884 million and in July about 626 million. This is the lowest figure in a year.

“Most of the indicators are down in the second quarter of 2022, without too many surprises given the global economic environment. The main metrics are down about 25%, a relatively modest drop compared to cryptocurrency trends. “, says the NonFungible site’s report for the second quarter of this year. However, he specifies that, for this period, the average price of NFTs has suffered a very slight decline of just 6%, while cryptocurrencies have been almost divided by 3.

A monopolistic trend

According to the report, CryptoPunks, Meebits and the Bored Ape Yacht Club family alone account for 30% of the USD volume traded in the global NFT market. “It therefore seems that a centralization of the market is taking place around the projects held by Yuga Labs for this first quarter of 2022”note Not fungible.

Monthly volume of NFT issued on the market. Data from The Block.

Overall, very few new NFTs were issued this quarter, “With an overall growth in supply of just 4%”, says the report. Falling prices, superimposed on falling volumes in the NFT market, made it more difficult to generate profits. Therefore, the return on resale decreased by 46% during the second quarter of 2022. The total loss increased by 23% and, as a result, the issuance of new NFTs slowed. In figures, we are talking about 1.8 billion US dollars of profit for 1.4 billion US dollars of loss. The collectibles segment is the most affected.

Currently, “OpenSea remains the market leader, with a monthly volume of $ 484.79 million in July”, reports The Block. But he is not spared from the crisis. In fact, it has gone from a total of nearly $ 5 billion in sales in January to 686 million in June. Additionally, the NFT sales platform announced the layoff of 20% of its workforce on July 14, 2022.

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