- There has been an increase in the volume of sales of NFTs.
- Low-priced assets of low prices are rarely exchanged.
- Many investors and interested parties have aired concerns about the future of NFT.
In a quest to become mainstream in commerce and business in general, there has been an increase in the volume of sales of Non-fungible tokens. Investors who had minted past pieces like CryptoPunks in 2018 had their wallets ‘fattened’ as they fetched a high price due to their rarity. Collectables minted more recently in sites like Bored Ape Yacht Club and Art Blocks Curated were traded for millions of dollars. There were high volumes recorded on different platforms that act as marketplaces for NFTs.
However, regardless of the high volume of sales made, research shows that assets of low prices were rarely exchanged. According to Bloomberg, 73.17% of NFTs on OpenSea did not change possession in the past 90 days; and if they did, there was only one transaction made.
To achieve a sale, investors put in up to $100 to mint to create a hype around it to attract sales. NFTs that are priced low seem to be of low value. The collections become meaningless as nobody buys them. For an investor not to miss a chance on sales, they must be at the right place at the right time to get the correct information.
Is the NFT market dead?
There has been a significant reduction in the volume of sales of NFTs as compared to August.
According to Nonfungible, there has been a record of reduction of sales from 138,109 on the 30th of August to 54,348 on the 22nd of September. Moreover, there is a decline in the value of sales, the Active Market Wallets, unique buyers and sellers, and the markets sales (both primary and secondary).
Many investors and interested parties have aired concerns about the future of NFT. Apart from the positive posts, some argue that the NFT market does not look as promising as it once did. This is primarily because of the drop in the average price of NFTs. When the market and concept behind NFTs began, the market was booming for artists! Many artists made a fortune from pieces they had created, which is not the case now.
As Bloomberg reports, 3% of NFTs that are actively traded are accountable for 97% of the exchange’s dollar volume. When a small percentage of assets are responsible for most of the trading volume, most of the assets are meaningless, and the market is at possible risk of collapse.
Nevertheless, the market is said to have significant improvement. It might take a while to achieve the improvement, but it might happen before the market collapses.