Most NFT is not in demand

Most NFT is not in demand

Throughout 2021, news headlines were rife with reports of new records in the NFT market, but September's momentum, as well as an in-depth analysis of metrics and user activity, suggest the trend is fading.

The biggest peak in market activity came at the end of the summer. It involved trading items from well-publicised collections such as CryptoPunks and Mutant Apes Yacht Club. Some of which have sold for tens of millions of dollars.

Such huge demand is not enjoyed by all collections. Data from OpenSea, the largest NFT trading platform, shows that a significant portion of low-cost tokens from lesser-known projects are not in demand at all. After studying OpenSea's statistics, Bloomberg analysts concluded that over the past 90 days, only one transaction was made from 73.1% of all NFTs.

Such statistics do not prevent some projects from succeeding, but the overall picture is not as rosy as it seems at first glance.

NFT statistics

In a commentary to Bloomberg, Nonfungible chief operating officer Gautier Zuppinger said that a large proportion of new collections on NFT platforms are unpromising and investors need to choose their assets more carefully for investment.

It is very likely that of all the collections released recently, 90% are completely useless and meaningless. To invest successfully in NFTs, you need to have the right circle and get important information on time, said Zuppinger.

The negative trend can also be seen in the number of trades on the trading floors, which have fallen from 138,000 at the end of August to 50,000 today, according to Nonfungible.

Roughly the same picture can be seen in other indicators, including the number of unique buyers and sellers, the number of active wallets, the dollar value of completed sales, primary and secondary market sales and others.

NFT Sales

For example, according to Dune Analytics, aggregate sales volumes across the largest NFT platforms have also been declining significantly since late August. At the same time, according to Bloomberg, only 3% of the total number of collections generate 90% of the total trading volume on the NFT market.

All of the above statistics indicate that the excitement in the NFT market has declined markedly, and whether it will recover to previous levels is unknown.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

View All Posts By Jack Evans