NFT Sales Volume Plummets From Present Highs: Is the Hype Over?
NFT Sales Volume Plummets From Recent Highs: Is the Hype Over?
What’s interesting, however, is that demand remains relatively healthy in the primary market. New releases from Top Shot continue to sell out almost instantly. Considering this, it’s likely that the speculative frenzy for NFTs had overheated the market — leading the distance to just experience a temporary pullback.
But as the novelty began to wear off and speculators moved on, the NFT marketplace has been in a continuous downtrend. Sales figures across online marketplaces for electronic art and collectibles have dropped precipitously, possibly exposing the absence of organic demand from the NFT space.
Other big metrics have flashed worrying signs.
In the past week alone, the gross amount of earnings and special buyers declined by 30 percent and 35, respectively. These figures have left speculators and market participants wondering if the NFT distance is experiencing a temporary pullback, or whether its hype was merely a flash in the pan.
Only weeks ago, it seemed impossible for the electronic art market to cool off. At its height, even Tesla’s CEO Elon Musk tweeted selling his NFT.
Published at Fri, 02 Apr 2021 06:18:09 +0000
Whether it is going to surpass its current highs anytime soon, however, remains to be seen.
NBA Top Shot, an NFT marketplace for NBA trading cards, has seen the total value of NFTs in circulation (represented by total market capitalization) drop $800 million — falling from a high of $1.85 billion to $1 billion. According to evaluate.market, the total value of earnings suffered a similar decline, as demand waned on the secondary market.
This also appears to be a sentiment shared by venture capitalists. Dapper Labs, the parent company of NBA Top Shot, recently raised $305 million in funding — not a paltry sum by any measure. Despite the recent pullback, other NFT marketplaces such as OpenSea have increased funds to expand their businesses. This is clearly a sign of confidence from investors, since they’ve bet on the long-term sustainability and growth of the NFT industry.
Featured image from UnSplash