A recently published report suggests a major drop in NFT sales. This called for a worrying sentiment in the NFT market, which is slowly being eroded after a massive performance recently.
The irreplaceable published a report talking about the performance of the NFT market during the first quarter of 2022. Several eyebrows have been raised since the report was published, indicating a declining culture of NFTs.
The first quarter of 2022 has seen some worrying trends in the NFT market. The number of NFT sales has dropped by 46%. In addition, daily average sales have fallen to 19,000 per week, a 92% drop from a peak of around 225,000 in September 2021.
Buyers of NFTs have also declined by about 30%, attributed to two factors. As reported by NBC, the number of active merchants declined from nearly one million accounts at the end of 2021 to approximately 491,000. With the flood of supplies, there are about five NFTs per buyer according to Chainalysis. It seems that the lack of leverage contributed to the collapse of NFTs.
Another developing trend is a 50% increase in total losses on resale. One of the infamous examples is Jack Dorsey’s first tweet attempting to sell NFTs. He reportedly paid $2.9 million for it in March 2021 and expects to touch $25 million in resales. But, his attempts to sell it failed, with a top bid of $6800.
But what about this data?
The irreparable report suggested a sharp review of the NFT marketplace in the first quarter of 2022. But the latest data, obtained from Cryptoslam, indicates a different trend for NFT performance as we enter May 2022.
Over the past 30 days, several major blockchains have handled astronomical NFT sales volume. Ethereum is the leading blockchain, with Solana in second place, followed by Flow, Polygon and Avalanche.
Ethereum registered a 66% increase in NFT sales to $3.9 billion. Much of this is made up of by the “Otherdeed” and “Moonbirds” collections, which have total sales of $1.3 billion. Solana accumulated sales volume of $325 million after a 50% increase. The leading NFTs on this network are “Ok Bears” and “DeGods” which are worth around $100 million.
Finally, the NFT Global Index rose 60% by sales volume to $4.44 billion. The NFT market dropped at the beginning of the year, but is slowly gaining momentum as the numbers here indicate.