NFT Industry Hit Hard In March With 31% Decline In Revenue – Here’s Why
04 April 2023 - 10:42AM
NEWSBTC
Despite the broader crypto market being bullish in the past few
days, the NFT industry has been battered by a sharp decrease in
revenue across the board. According to CryptoSlam, NFTs sales
volume dropped by nearly 31% since last month. This has been in
complete contrast to the crypto market which regained lost ground
from a disastrous 2022. Although several big developments around
NFTs should’ve helped with the sentiment surrounding the asset,
being a new asset class, there are still doubts about whether there
is actual utility behind the tech. For now, let’s take a look at
the dire situation the NFT industry is in. Related Reading:
These Top 5 Meme Coins Are Bleeding As March 2023 Ends – Here’s Why
It Doesn’t Look Great For NFT Industry The current data suggests
that the industry will struggle in the short to medium-term. In
terms of blockchains, Ethereum still leads the market in sales and
transactions. Collections-wise, Bored Ape Yacht Club is still the
market leader with $38 million worth of sales. Despite this,
the market seems to freefall at the moment. Data from the Forkast
500 NFT Index shows a 4% decline in the past month. Buyers of NFTS
also fell by a significant margin since last month, shedding 34% to
its current value of 1.3 million. Total transactions have also
decreased by 22% to 5.7 million Nonetheless, there seems to have a
trend in the NFT market. The Ethereum blockchain, although still
the number one chain to trade and mint NFTs on, has been suffering
a significant dip in almost all metrics. Other “minor” blockchains
like ImmutableX, Polygon, Solana, and Arbitrum all saw big jumps in
transactions. It should be noted, however, that Polygon is a
layer 2 platform built on top of the Ethereum blockchain. The jump
in transactions on the L2 might not reflect on the overall metrics
of its parent L1 chain. Crypto total market cap retains peg
on the $1.14 trillion level on the daily chart at TradingView.com
Related Reading: Arbitrum Whales Dump 3.73 Million Tokens,
Impacting Market Prices How This Would Affect The NFT Sector This
recent development in the NFT market would certainly affect the
rate of adoption of non-fungible tokens as both a form of asset and
technology. However, the rising metrics of the minor blockchains
reveal that investors are diversifying from NFTs minted on the
Ethereum blockchain. For NFT investors, the market could
experience pain in the short to medium term. Investors and traders
should then diversify in the minor blockchains with rising
transactions as this is the place where they’ll get the most out of
their money. -Featured image from Getty Images
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