Key parameters for non-fungible tokens (NFTs), such as sales, volume, and unique users, are at a yearly low. Leading the community to speculate on the reasons.
Renowned NFT analyst Giancarlo Chaux first highlighted the fact that the number of unique NFT buyers/sellers is decreasing. Most of the metrics are at a yearly low today, while some have dipped to the levels of 2021.
NFT Sales Count Drop Below 10,000 Across Marketplaces
According to a Dune dashboard, the NFT sales count across popular marketplaces is 9,887 today. The metrics have plummeted to their lowest point of 2023, and upon examining a wider timeframe, their current status is akin to July 2021.
Similarly, the count of unique users also stands at a yearly low today. NFT platforms recorded 4,265 unique users, a low that has not been since July 2021.
Another key metric, NFT trading volume, is down to 5,823 Ethereum (ETH) today across major marketplaces. Interestingly, new marketplace Blur was managing that volume on its own in December 2022. Also, the average sales size has also plummeted sharply to around 18.7 ETH today.
Anti-Adoption Phase
The declining data has sparked a discussion amongst the community. Many have pointed out reasons such as meme coin season, tax season, and a sharp rise in the Ethereum gas fees.
A Twitter user explains, “Hyped meme coins attracted volume, both human and MEV bots… this caused gas to go brrrr, high gas turns off jpg collectors and stalls activity, no mystery… and this is only one factor out of many at play.”
On Wednesday, BeInCrypto reported that a Maximal Extractable Value (MEV) bot spent over $1 million in gas fees within 24 hours. The MEV bots’ activity resulted in over 140% jump in Ethereum gas fees.
However, a Twitter user, Konstantin, argues:
“Whatever reasons people comment here, 10k is still a shockingly low number after two years of a massive NFT boom.
It’s less than an ice hockey arena, we are in the anti-adoption phase somehow.”
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Source: https://beincrypto.com/nft-sales-drop-below-10k/