The Wall Street Journal says “the NFT market is collapsing,” but the data says otherwise
An article in the Wall Street Journal stated gross sales of non-fungible tokens (NFTs) are “flatter” – in the similar week, the high 5 collections topped $1 trillion in major and secondary gross sales.
The article cited data from the NFT Nonfungible market evaluation platform, suggesting that the variety of NFT gross sales has dropped by 92% in September 2021.
“The NFT market is collapsing,” the article concluded.
However, Dune Analytics’ dashboard chain data means that the NFT market is strong, with info displaying that NFT customers and transactions are a lot increased than reported by Nonfungible.
The evaluation additionally exhibits that each day Ethereum NFT weekday US greenback quantity is amongst the highest seen since February, with the common OpenSea market seeing almost $550 million on Sunday alone.
Tom Schmidt, a companion at enterprise capital agency Dragonfly Capital, tells the same story when he focuses on OpenSea transactions and greenback quantity.
there man pic.twitter.com/CTJFldAHNk
— Tom Schmidt (@tomhschmidt) May 3, 2022
Subsectors of the NFT market are rising, and whereas some areas of the oversaturated market are declining, others are seeing huge beneficial properties.
Nansen’s analytics platform, which categorizes NFT collections by sort, exhibits that “Blue Chip” NFTs — established and valued manufacturers like Bored and Mutant Ape Yacht Club and Azuki tokens — far outnumber artwork tokens or video games.
Nansen’s Blue Chip-10 index, which tracks the high 10 NFT initiatives, is up 81% year-to-date (YTD), whereas as compared, indices monitoring the high 10 NFT artwork and gaming collections are down 39% and 49% year-to-date. till at the moment
This phenomenon of consolidation of NFT market capital into main collections was famous in an evaluation by NFTstatistics.eth, who shared a chart in late April displaying that the 5 main collections drive the NFT Ethereum market.
This development continues: BAYC, Azuki, CloneX, Doodles and now Moonbirds stand other than everybody else.
I’ve already talked about the efficiency of the massive caps, but it is actually the high 5 initiatives that generate all the earnings. pic.twitter.com/UsUlwHMJ9M
– NFTstatistics.eth (@punk9059) April 26, 2022
“There’s a transparent development proper now: 5 or 6 of the most profitable initiatives are outperforming dramatically, whereas the relaxation are flat or declining,” NFT’s NFTstatistics.eth instructed Cointelegraph.
Nonfungible’s data exhibits an uptick in gross sales and energetic wallets on that day to numbers not seen in data since November 8, 2021, straight associated to Yuga Labs’ Otherside metaverse land sale file (and Ethereum file). once more contradicting NFT gross sales are “flatlining”.
It’s not clear why the non-fungal data the WSJ relied on is misaligned with Dune’s data. However, it might be as a consequence of the introduction of gross sales quantity of Nonfungible’s play-to-earn (P2E) sport Axie Infinity.
The quantity of the common P2E sport peaked at over $40 million on November 4, 2021, earlier than progressively dropping to present ranges of round $500,000, in keeping with data from CryptoSlam.
But, the collapse of the recognition of a P2E sport, as NFTstatistics.eth put it “”NFTs are collapsing” is a really totally different message”.
@DJohnson_CPA means that AxieInfinity was so huge that it dominated the November numbers and has since collapsed. It appears attainable.
From my perspective, “NFTs are collapsing” is a really totally different message https://t.co/lq66GbhbAj
– NFTstatistics.eth (@punk9059) May 3, 2022
While the present dialogue focuses on Ethereum NFTs, Solana is turning into a preferred blockchain for the sort of asset and is the second largest blockchain on Ethereum for NFT gross sales quantity.
Last week, the Solana NFT “Ok Bears” mission surpassed OpenSea’s 24-hour gross sales tracker for the first time and ranks fourth behind Mutant Ape Yacht Club in seven-day CryptoSlam gross sales quantity, promoting over $47 million.