Report NFT Market Q2 2022

In recent times, the cryptocurrency market has fallen significantly. This situation affects many companies, causing them to go bankrupt. Moreover, this downward trend also affects the NFT sector. Statistical analysis firm NunFungile.com conducted a survey to assess the performance of this industry in the second quarter of 2022. This is the core of this research.

Dollar trading volume drops by 25%

Between the first (Q1) and the second (Q2) of this year, the number of dollars traded in the NFT market lost a quarter of its value. Indeed, it was estimated at about US$8 billion in the second quarter, compared to $10.73 billion in the first quarter. However, the decline is not only in dollar-denominated trading volume, but in the majority of market performance metrics. Specifically, the number of buyers (-25.41%), sellers (-35.88%) and, even more interesting, the number of NFT sales during the year (-20.05%). At the same time, Yuga Labs, a publisher of NFT projects, takes over about 30% of the total sales volume. This percentage is divided over the various projects that the company is currently carrying out. The rest of the market is supplied by other key players in the ecosystem and by resale between individuals. Although the market is currently contracting, interest in NFTs remains quite high.

Sales volume second quarter

460 million cumulative profit

The NonFungible report shows that despite the slowdown in the NFT market, a cumulative profit of $461 million was posted during the second quarter. This result is obtained by subtracting the total resale losses (1.43 billion USD) from those of the resale profits (1.89 billion USD). While this result is positive, it is a significant drop from Q1 earnings, when it was $2.35 billion. This corresponds to a decrease of 77.35%. This difference can be justified by the decrease in investments made and by the decrease in buyers.

Profits down and losses up

In a similar vein, it can be seen that the total profit in the second quarter decreased by 46% and the total loss for the same period increased by 23%, compared to the first quarter. This is because many NFT holders are forced to sell their assets at a loss under bear market pressure. For example, data from NonFungible shows that NFT trading can generate up to $162 million in losses per week, compared to gains of $27 million in the same time frame. This represents over $100 million in accumulated losses on a weekly basis. That said, the cumulative losses in other sectors (metaverse, gaming…) are less important, no more than $10 million a week.

Weekly evolution of profit and loss volume on NFT . resale

Secondary market dominance

The report shows a concentration of total dollar transactions in the secondary market compared to the primary market at an 80-20 ratio. On the other hand, in terms of sales volume, there is a certain balance between the two market segments. Moreover, few NFT projects saw the light of day in the second quarter due to the drop in demand. The total supply increased by only 4%. However, the sales volume in the primary market is still as strong, with more than 600,000 sales in the first days of June.

Sales volume and dollars traded for primary and secondary markets (Q2 2022)

Given all the above figures, the conclusion that can be drawn with regard to the situation of the NFT markets in the second quarter of this year is obvious. The latter experienced a real decrease compared to the previous quarter. On the other hand, it outperformed the crypto asset sector and worse than the gamingthe metaverse and blockchain utilities.

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Junie MAFFOCK Avatar

Junie MAFFOCK

I came to blockchain out of curiosity and stayed with it out of passion. I was amazed at the possibilities it offers due to its different usage scenarios. With my pen I hope to help democratize this technology and show how it can improve the world.

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