According to the Wall Street Journal, the NFT market is in crisis

According to the Wall Street Journal, The NFT market is practically collapsing, with data close to zero in terms of sales. Too harsh a thesis, however, was practically rejected by official statements. In fact, over the past week, the five best-selling collections have achieved a turnover rate of approx Billion dollarbetween sales in the primary and secondary markets.

The famous financial newspaper has taken as the basis for its data analysis Non-Fungiblea platform dedicated to analyzing the NFT markets, according to her NFT sales could have fallen by 92% compared to the highest level recorded in September 2021. An eloquent number, to which are added those related to the number of active wallets in the NFT markets on Ethereum, which recorded a decline in the ranking88%compared to the peak recorded in November 2021.

At this point, one could argue that the latter statements in fact constitute the classic exception that confirms the rule. However, there are other studies that seem to refute the radical conclusion of the Wall Street Journal, namely those presented by sand dune analytics. So let’s get to know them better to try to understand the actual reality.

Dune analytics data

Taking a quick look, there seems to be a very different fact emerging from the data in the Dune Analytics series from the one that Nonfungible envisioned, such as indicating that the NFT market is in fact still continuous. In particular, the number of users and transactions is much greater than the report the Wall Street Journal used for its article.

Dune Analytics is also adding other data to support its analysis, which is data on the daily US dollar volume of Ethereum NFTs, which it recently accessed. Highest level since February. In particular, on the first day of May, OpenSea, one of the most popular marketplaces in this segment, recorded a turnover of nearly $500 million. In particular, the sale of new Yuga Labs NFTs to the metaverse led to chaos on the Ethereum blockchain.

Tom Schmidt, a partner at venture capital firm Dragonfly Capital, also criticized the US newspaper’s thesis, highlighting that the newspaper did not even consult data on trading volume produced in dollars.

It is also necessary to record another trend that the Wall Street Journal did not take into account, which is the fact that in the NFT market, sub-sectors are highlighted which, unlike the areas that are now inflated, are performing very importantly. It’s especially Nansenan analysis platform that typically breaks down groups of non-fungible tokens by type, to show how well-established brands are registered, for example Azuki Token, Mutant Ape Yacht Club and Bored, referred to as “Blue Chip” Much better performance than those produced by the games and art world.

Furthermore, a number attested by the Nansen Blue Chip-10 Index, which monitors the top 10 NFT projects, Within 81% since the beginning of the year. The figure that stands out most when compared to those in the top NFT gaming and arts groups, which at the same time decreased by 49 and 39%, respectively.

It is a phenomenon related to the enhancement of the best NFT clusters, which was highlighted in an analysis conducted by NFTstatistics.ethin the form of a joint chart showing that the top five clusters (Azuki, BAYC, Doodles, CloneX and Moonbirds) currently lead the entire NFT market on Ethereum, while the rest are at least in the fatigue phase.

Why differing views?

Of course, the discrepancy between the non-fungible data compared to the dune analyses is now being monitored, just to try to understand why they originated. One of the most supported versions is the one that traces the difference to the fact that the first version takes into account sales data related to a game Axi Infinity.

In fact, Axie Infinity’s sales volumes reached an all-time high of more than $40 million on November 4, 2021, and then began gradually declining to half a million dollars per day. A trend that could have had a major impact on the analysis from which The Wall Street Journal concluded, but threatens to distort public view, notes NFTstatistics.eth, according to which the decline in popularity of P2E games should not drive the death of the entire NFT industry.

At the same time, it must also be emphasized that the conclusion of the financial journal is only the most recent verb in the chain of real news in this sense. It suffices to remember how the crisis began to appear after the total Failed to Resell Jack Dorsey’s First Tweetwhich was bought last year for about $3 million by Sian Estavi.

And when the Iranian businessman tried to resell it, the auction proved so unsuccessful, if not disastrous, that the highest bid came to $7 thousand. To better understand the features of what happened, just remember how the auction base was $ 48 million, which seemed to Istavi an achievable goal on the emotional wave provoked by the news of Elon Musk’s entry into the Twitter capital. get control.

The situation is on the move

However, reality can once again prove right that the ancient Latins, who used to say that virtue is always somewhere in between. The saying that applies to the NFT market can be translated simply as an acknowledgment that the same thing It is not in a crisis, but in a moment of settlementsuch as giving pause to those who are really interested in exploiting this phenomenon.

In practice, those who intend to buy ignore the less important groups and reserve their efforts in the NFTs for the most relevant topics. And again, it doesn’t give up in the face of obvious off-market offerings such as the one related to Jack Dorsey’s uninhibited token.

A simple note, moreover, she seems to have endorsed it Sotheby’s And Kristi the two well-known auction cycles that recently decided to engage in a sector that is clearly considered fertile, which indicates that the market is not dead, but simply in the stage of redefinition, from which a review and correction in the face of excesses of beginnings can emerge.

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