The number of NFTs sold in the marketplace has also decreased significantly over the past few days to around 16,149 sales as of April 19.
non-fungible token (nftTremendous progress has been registered in the market DeFi boom in the last few years. The growth of GameFi and the Metaverse market has given a big boost to the NFT market, previously closed to digital art collectors. Since the sale of Beeple NFTs exceeded $69 million two years ago, dozens of other talented artists and startups interested in the market have emerged.
As a result, the NFT industry grew to a billion dollars despite the 2022 crypto bear market. However, the significant gains made in the NFT market could be quickly eroded amid the meme coins boom.
The demise of the NFT market
According to Aggregate Markets data provided by Dune Dashboard, the number of unique addresses on top NFT markets including Blur, OpenC and LuxArray has dropped significantly over the past few days, with approximately 7,805 unique users as of April 19. Interestingly, this is the lowest number of unique NFT users recorded since July 2021.
It is worth noting that the number of NFTs sold in the markets has also come down significantly in the last few days to around 16,149 sales as on 19th April.
The significant drop in NFT activity has been attributed to a number of factors, including higher gas fees amid less appetite for digital collectibles. Furthermore, there are other profitable trades in the cryptocurrency market including emerging meme coins such as $PEPE.
“Our thesis is that since there is a general decay in NFT users, this is most likely due to macro scenarios (eg higher gas prices + tax payment liquidity issues) than to changes in business patterns (eg, e.g. reduction in airdrop farming trading),” SeaLaunch, an NFT data and research center, noted,
Reportedly, there has been a significant drop in both heavy and small NFT traders over the past few days. As a result, the NFT marketplace may struggle to stay afloat in the coming months as trading revenue dwindles along with shrinking trading volumes.
4/ We previously analyzed the types of users of each NFT market according to their trade in the NFT market.
Interestingly, all types of users (from heavy traders to “normal” NFT traders) are performing decay activity at about the same pace.
Source: https://t.co/ZSpTmGl9Qs pic.twitter.com/9Ca8RBPdbl
— sealaunch.xyz (@SeaLaunch_) April 20, 2023
big picture
The NFT industry has shown a decline in innovation compared to other blockchain products. Nevertheless, the Ethereum The network has managed to maintain its position as an NFT hub with steady trading volumes in the last 30 days. According to NFT data analyst on Twitter @hildobby_, digital art collectors are not happy with the high minting and trading gas fees.
“I think it’s a combination of factors, but the biggest factor [in my opinion] What hasn’t been very interesting in NXT lately and the rapidly rising gas prices are not helping,” said the analyst.
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