The Current State of Non-Fungible Tokens (NFTs) Market

Vraag naar NFT’s historisch laag

The NFT market has been growing in recent years, with a surge in activity during the previous bull market. However, according to data from analysis platform Dune, the number of daily users and sales of NFTs have dropped to the lowest point in almost two years. In the first quarter of this year, the trading volume of NFTs doubled to a total of $4.7 billion. Nonetheless, we are currently at the lowest number of users and sales since July 2021.

According to a Dune dashboard compiled by NFT researcher SeaLaunch, the number of unique users on the main NFT marketplaces, including Blur, OpenSea, and LooksRare, has steadily declined over the past seven days and fell to 7,805 on April 19. This number of unique users in NFT marketplaces has not been this low since July 31, 2021, when the number of unique users on OpenSea and other marketplaces was registered at 7,455. The sales have also declined sharply over the past seven days, with 16,149 sales recorded on April 19. The last time the number was this low was on November 9, 2021, when sales were equal to 12,910. However, despite these statistics being on the pessimistic side, the trading volume in ether (ETH) on NFT marketplaces has remained relatively stable over the past 30 days.

Reden tot daling

It is unclear why the number of daily users and sales have taken a nosedive on NFT marketplaces. SeaLaunch has stated that it is most likely a “macro scenario” causing the current situation and cites “high gas prices” and “liquidity problems in the tax season” as possible causes. As per recent Ethereum news, there has been a surge in gas fees on the Ethereum network as a result of the increasing popularity of some new meme-coins.

Challenges for NFTs

The recent drop in NFT activity raises some challenges for NFT enthusiasts and investors. First, the drop in demand for NFTs could affect the value of assets in the market. This could lead to a series of sales and massive losses for investors. Second, there is a need to address the challenges of high gas fees, which make it difficult for small-scale NFT creators to operate. This challenge could further widen the gap between small-scale creators and large-scale creators.

The Future of NFTs

Despite the challenges faced by the NFT market, the future of NFTs seems promising. A report by NonFungible.com shows that the total value of NFT transactions increased by 299% to $2.5 billion between 2019 and 2020. Moreover, according to Statista, the global NFT market is expected to reach $1.3 billion in 2022. As technology continues to improve, we may see more extensive use of NFTs in various sectors, such as art, gaming, and real estate.

Conclusion

The current state of the NFT market presents some challenges, but it is not all doom and gloom for the industry. The drop in demand for NFTs creates an opportunity for small-scale creators to improve and go beyond competition. However, the need to address the challenges of high gas fees is crucial to the industry’s growth. All in all, the future of NFTs seems promising, and we could see more significant developments in the near future.