In its latest quarterly report, NonFungible.com highlights the drop in resale profit in the NFT market. Thus, the latter fell by 84%, resulting in a net loss on the balance sheet of $450 million.
NFT earnings down sharply in last quarter
NonFungible.com, the specialist in analysis of the non-fungible tokens (NFT) market today publishes its latest quarterly report in which we can see a substantial drop in profit on resale.
Indeed, while this metric stood at $2 billion in the second quarter, it barely reached $327 million between June and September. That corresponds down 84% or a division by a factor of 6. This decline is also evident in the trading volume with a drop of 77% as well. And for good reason, it went from 7.36 billion to 1.67 billion dollars.
With such data, the quarterly balance sheet therefore closes on a net loss of $450 million, which would be a first for the market according to the report. Note, however, that the study only takes into account the following three blockchains:
- Ethereum (ETH);
- Ronin (RON);
- Flow.
The values thus presented do not therefore take into account the activity on other networks such as Solana (SOL) for example.
Nevertheless, in terms of the number of gross sales, the volume only decreased by 5%. These sales thus represent nearly 10.9 million transactions. On the other hand, the analysis identified exactly 1,173,650 active addresses, a drop of 17%. However, the average shelf life of an NFT hasincreased from 27.5 to 31.1 days.
👉 To go further – Find our explanatory guide on non-fungible tokens (NFT)
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Is the finding really worrying?
Despite a more than mixed quarterly report, we can highlight some positive points. Quite rightly, the 780 million dollars of losses on resale, which weigh on the result, are in reality almost half as high as in the previous quarter. It is therefore this too low proportion of sellers recording a profit that is causing the NFT market to plunge into the red.
Moreover, after a sharp fall at the start of the second quarter, the curves showing the different categories of portfolios active on the market seem to find a point of stabilization :
Figure 1: Evolution of active wallets on the NFT market
As for the popularity of searches related to the term “Non Fungible Token” on Google Trends, the graph below shows that after a meteoric rise at the end of 2021, the latter has experienced an equally brutal fall. As the score is within a range of 1 to 100, it is currently at an annual low, stabilized at 12:
Figure 2: Popularity of the “Non-fungible Token” search
Although NFTs still seem to benefit from stronger resilience, they still remain correlated to the cryptocurrency marketwhich may explain part of this decline.
Nevertheless, this is necessary to clean up the ecosystem after the great phase of euphoria. This will then allow serious projects to develop on a good basis, without being influenced by ambient noise.
👉 Also in the news – Gaming NFT: the National Rugby League (LNR) presents Sorare du rugby with OVAL3
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Source: NonFungible.com
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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