Home Ethereum NFT Sales See 25% Drop June-July Amid Crypto Crisis

NFT Sales See 25% Drop June-July Amid Crypto Crisis

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Non-fungible token (NFT) July sales in secondary markets fell 25% from June to $650 million, the second month in a row below $1 billion, data from CryptoSlam NFT Aggregation Siteand reflecting a broader crypto crisis.

Sales had peaked in January at $4.7 billion, with more than one million unique buyers in the market.

“The stream [crypto] the market right now is in a bear market,” said Anndy Lian, author and blockchain entrepreneur and founding member of creative studio NFT Influxo. Forkast in an interview. “So [NFT] sales actually reflect very much how the market reacts.

Yehudah Petscher, NFT Relationship Strategist for CryptoSlam, said he believes the market has yet to find bottom.

“I don’t know if we’ll find the bottom this year,” he said in a Forkast interview. “I believe this bear market we’re in could last for several years.”

However, he found some optimism in the number of unique buyers in the market, pointing out that buyers fell just 7% month-on-month in July to 532,000, still more higher than the same month last year.

This shows, says Petscher, that while total US dollar sales are down, the number of transactions makes the outlook slightly more optimistic.

“NFTs are in a tough spot right now, but I still think in a very healthy place as far as growth goes. [or] with regard to operations [are concerned]“, said Petscher.

Merge and more

The so-called “merger” for Ethereum could also give a boost to the NFT market, as the main NFT blockchain is expected to switch to a proof of stake (PoS) network in the coming months.

Switching to PoS would have reduce the energy used in the Ethereum network by up to 99%blunting the environmental criticisms on the functioning of the network.

“I think [the Merge] will create another boost of hype among the Ethereum fanbase,” Lian said, but warning that transaction fees – another common criticism of the Ethereum network – will likely remain elevated.

The NFT and crypto markets now appear to be largely correlated, despite expectations during the NFT boom of late 2021 and early 2022 that they would be inversely correlated. The view then was that investors would be less willing to buy NFTs when the crypto they were denominated in was gaining in US dollars.

“But they [now] seem to go together,” Petscher said. “When crypto is down, NFTs seem to be down. Now, I’m not sure exactly why it happens this way and why it doesn’t reflect what we thought, but they are attached at the hip.

Rather than depressing crypto stocks driving up the price of NFTs to compensate, the overall market negativity is driving prices down to attract buyers there, Petscher said.

“There’s not a lot of cash and people are worried there won’t be buyers when they’re looking to sell, so it’s a race to the bottom,” Petscher said. “We can see it with the prices at all levels.”

The monkeys rule (again)

Yuga Labs projects continued to dominate the bestseller list in July, with Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and CryptoPunks all making the top five.

Otherdeed – land parcels from the upcoming BAYC metaverse project “Otherside” – ranked fourth for the month with over $30 million in transactions.

This made the project the seventh to reach the US$1 billion mark in total sales, despite only launching in May.

With over $30 million in secondary sales in July, football-based collection Sorare came third on CryptoSlam’s list. Sorare allows people to buy and sell players in global fantasy football competition as another way to interact with the global game.

Petscher said Forkast that he expects the sport to be a real growth area, as these tokens usually bring increased utility.

One example is the WAGMI United token released by British minor division football club Crawley Town FC, which gives fans the ability to vote and participate in team decisions through ownership of the digital token.

Another area of ​​growth is art, says Petscher, which sees attention starting to move away from NFTs as simply profile pictures towards more comprehensive works of art as more creators get involved. install in space.

“That’s just the tip of the iceberg,” Petscher said. “Art [NFTs] are just getting started, it’s there in a big way and it will continue to grow.

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