Global NFT Sales Fall 25% To $8bn In Second Quarter as Bear Market Takes Hold

Jamal Molla
Written By Jamal Molla
I write about cryptocurrency, with a special interest in NFT and metaverse in particular.

Amid the bearish trends rocking the stock and cryptocurrency markets, the global NFT market recorded a 25% drop in sales volume as of the close of the second quarter of this year. According to NonFungible.com, an NFT platform that tracks the Ethereum blockchain, the sales and resale of NFTs at the end of the first quarter of this year is higher than what was recorded between April and June. The platform stated that a whopping $10.7bn was traded in the first quarter while $8 billion was exchanged during the second quarter.

“The NFT market is currently experiencing a historical bearish period. Liquidity is down and prices are very largely affected by the fall in value of cryptocurrencies. For the first time in the history of NFTs, trading-related activities are no longer profitable,” NonFungible.com said in a statement issued on Tuesday.

Non-fungible tokens are digital assets or digital artworks created by artists or content creators and can be traded on secondary marketplaces like OpenSea. They usually take the form of virtual lands, digital work, weapons in video games, or a domain name. NFT ownership is recorded on the blockchain. They have unique qualities, unlike currencies, which prevent them from being interchangeable.

In 2021, Jack Dorsey, Twitter’s former chief executive, made headlines when the NFT of its first tweet traded for about $3 million. Similarly, in March 2021, Mike Winkelmann, a digital artist, sold an NFT worth $69m. However, Chris Brown’s NFTs collection experiences low buyers. According to DappRadar, a platform that tracks crypto data from blockchains, over $24.9bn was recorded in NFT sales and resale in 2021.

“The most profitable categories were Metaverse, Utilities, and Collectible NFTs. Some countries in South-East Asia topped NFT-related search queries. The decline in the prices of some cryptos like Ether may not be unconnected to the downward trend being experienced in the global NFT market,” according to Nonfungible.com.

The beginning of the NFT craze — in pictures

According to the statement issued by Nonfungible.com, NFT profit at resale in the second quarter decreased by over 46%. Still in the second quarter of this year, the global NFT market was largely polarized around projects that were launched or acquired by Yuga Labs, including CryptoPunks, Meebits, Bored Ape Yacht Club, and OtherSide. These projects accounted for over $2.5bn.

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