NFT sales drop 92% since its peak
According to a new report by The Wall Street Journal’s NonFungible.com data, NFT sales dropped 92% since September 2021, from a daily average of about 225,000 to 19,000 this week.
Meanwhile, the number of active wallets in the NFT market also dropped 88% since November 2021, from 119,000 to 14,000 last week.
Over the past months, news reports on the decreasing value of NFTs have also surfaced, such as Jack Dorsey’s first Twitter post did not attract any bids above US$ 14,000, compared to its asking price of US$ 48 million. The NFT was ultimately purchased by CEO of Malaysia based blockchain company Bridge Oracle, Sina Estavi for US$ 2.9 million.
Despite the report, the company posted a tweet on Wednesday, which said, “The market cannot really be considered to have collapsed…We are observing a stabilization of the NFT market, in line with the last quarter of 2021.… But compared to Q1 2021, volume (of active wallets) is still very encouraging!”
Chainalysis reports signs of growth in NFT transactions
Another report preview released on Thursday by blockchain analytics company Chainalysis also uncovered a decline in NFT trading. Nearly 1 million accounts were trading NFTs in the beginning of 2022 (with institutions making the bulk of NFT purchases, this has also declined since winter of 2021) , but the number has since dropped to around 491,000, according to the report.
“NFTs saw explosive growth in 2021, but this growth hasn’t been consistent and has leveled off so far in 2022,” according to the report.
The total NFT transaction activity dropped from US$ 3.9 billion during the week of Feb 13, 2022 to US$ 964 million in the week of March 13, marking the lowest volume of NFT transaction activity since August 1, 2021.
Despite that NFT activity slowed and stabilized in 2022, its transaction volume continues a steady growth with month-to-month fluctuations. Moreover, the NFT market transaction activity has been recovering since mid-April 20222, with over US$ 37 billion transferred from crypto wallets to NFT marketplaces as of May 1, 2022.