The non-fungible token (NFT) marketplaces have recently experienced a stark downturn, recording a significant dip in transaction volume and prices, with numerous projects posting double-digit losses. Blue chip NFTs, as reported by Nansen, have suffered a hit of up to 25%, marking the sector’s lowest level since April 2021. As per CryptoSlam data, total sales volume for last month was pegged at $465 million – a near quarter down from June’s figures and the fifth successive month of losses since February’s peak of $1.2 billion.
The ebbing consumer demand for NFTs is underscored by the average price downslide to $47, which seems to be causing a knock-on effect on blue-chip assets. Belying this dip in sales, however, transaction volumes have shown only a marginal decrease. Data from July reveals transaction volumes were at 10.4 million, a slight descent from June’s 10.8 million. CryptoSlam further reveals the top three networks for NFT sales as Ethereum, Bitcoin, and Solana
A sudden lurch into the spotlight is the dramatic fall in the floor price of NFT projects such as Bored Apes Yacht Club (BAYC), recording a 27% plummet in the last 30 days. This is accompanied by bigger losses for DeGods and Azuki, where a 55% plunge was recorded for DeGods collection and Azuki’s floor prices hit a low of 36%. The bearish atmosphere in the NFT market is further highlighted by a 40% drop in the Nansen NFT 500, and a 10% drop in Blue Chip 10 index.
A counter-narrative to this declining trend can be seen in the rise of smaller, newer NFT projects. For instance, in the past 30 days, Miladays has experienced a 66% spike in its floor price, while Sproto Gremlins surprised many with an upswing of 262%. Consequently, NFT aggregator Rarible has shown growth, driven by a surge of up to 585% in volume over the past 24 hours following their announcement of support for creator royalties.
While the NFT market is currently sporting a bearish outlook, opportunities for innovation and adaptation could potentially be seen as silver linings in the current downturn. Some developers are mulling over the creation of new collections at lower prices to attract consumers moving away from “Blue Chip” NFTs. In times of uncertainty, it is both the readiness to adapt to the changing landscape and the ability to identify hidden opportunities that help reshape the market.
Source: Cryptonews
