In its latest quarterly report, NonFungible.com highlights the decline in resale profit in the NFT market. Therefore, the latter fell 84%, resulting in a net loss on the balance sheet of $ 450 million.
Earnings of NFT are down sharply in the last quarter
NonFungible.com, the specialist in analysis of the non-fungible token market (NFT). today it publishes its latest quarterly report where we can see a substantial decline in profit at the time of resale.
In fact, while this metric stood at $ 2 billion in the second quarter, it barely reached $ 327 million between June and September. This corresponds down 84% or a division by a factor of 6. This decline is also evident in trading volume with a decline of 77%. And for good reason, it went from $ 7.36 billion to $ 1.67 billion.
The quarterly financial statements are therefore closed with these data with a net loss of $ 450 million, which according to the report would be a first for the market. Note, however, that the study only takes into account the following three blockchains:
- Ethereum (ETH);
- Ronin (RON);
- To flow.
The values thus presented therefore do not take into account the activity on other networks such as Solana (SOL) for example.
However, in terms of the number of gross sales, volume decreased by only 5%. These sales therefore represent nearly 10.9 million transactions. The analysis instead identified exactly 1,173,650 active addresses, with a decrease of 17%. However, the average shelf life of an NFT hasincreased from 27.5 to 31.1 days.
👉 To go further – Find our explanatory guide on non-fungible tokens (NFT)
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Is the discovery really worrying?
Despite a rather mixed quarterly report, we can highlight some positive points. Rightly so, the $ 780 million in resale losses, which weigh on the result, are in reality almost half of the previous quarter. It is therefore this too low percentage of sellers making a profit that is plunging the NFT market into the red.
Furthermore, after a sharp decline at the beginning of the second quarter, the curves showing the different categories of portfolios active on the market they seem to find a point of stabilization :
Figure 1: Evolution of active wallets on the NFT market
Regarding the popularity of searches related to the term “Non Fungible Token” on Google Trends, the graph below shows that after a lightning-fast rise at the end of 2021, the latter experienced an equally brutal fall. Since the score is in the range of 1 to 100, it is currently at its annual low, stabilized at 12:
Figure 2: Popularity of the “Non-fungible Token” search.
While NFTs still appear to benefit from increased resilience, they still remain related to the cryptocurrency marketwhich could explain part of this decline.
However, this is necessary to clean up the ecosystem after the great phase of euphoria. This will then allow you to develop serious projects on a good basis, without being affected by ambient noise.
👉 Also in the news – Gaming NFT: National Rugby League (LNR) presents Sorare du rugby with OVAL3
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