In its latest quarterly report, NonFungible.com highlights the decline in net profit from the sale of non-fungible tokens (NFTs). This research also shows other interesting statistics such as a breakdown by sector or the interest in NFTs by country.
NFT sector suffers from falling profits
NonFungible.com, the site specializing in the analysis of the market for non-fungible tokens (NFT), unveils its latest quarterly report with a significant decline in resale profit. Indeed, the second quarter of this year posted more than $1.88 billion in capital gains versus $3.5 billion in the first quarter, i.e. a decrease of 46%.
The volume also follows a similar trend. After $10.7 billion in the first three months of the year, drop of almost 25% brings the months of April to June at 8 billion volumes.
Other interesting data from the report also shows a 23% increase in loss-making sales. Parallel to this, the the duration of the call the average also increased, from 30.9 days to 47.9 days.
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An analysis per sector
The analysis report also shows a breakdown by sectors. For example the collection of NFTs, notably represented by the Bored Apes Yacht Club (BAYC) or the CryptoPunks leading the way, with 330,909 active portfolios in the second trimester:
Figure 1: Number of active wallets
In terms of volume traded, this category is also far ahead, with nearly $3.79 billion. In comparison, the metaverse sector, in second place, achieves a performance of 1.25 billion.
However, it will be interesting to note that while gaming “only” registers $389 million in volume, it is the industry that most sales account. It represents over a million, neck and neck with the collection of NFTs. This shows a strong inequality in unit prices.
In terms of global interest in NFTs, Asian countries are clearly ahead according to Google Trend:
Figure 2: Country Ranking of the Search “Non-Fungible Tokens” on Google Trends
The first European country only arrives at the 17 ᵉ position and it is the Netherlands with an interest score of 35/100. This shows the margin of progress that can be made on the Old Continent.
Bad results to put in perspective
If the decline in earnings on the sale of NFT since the first quarter and the other negative data indicate the industry is underperforming, it’s worth it take note. Here’s what the NonFungible report states:
“However, if we take a step back, we find that interest is back at the September 2021 level, which was considered the golden age of NFTs at the time. »
It is also shown on the other side strong centralization of this industry. The Yuga Labs studio is effectively concentrating 30% of its sales volume in the second quarter with these various projects. The arrival of the Otherside metaverse was also a major player in this result, with a net profit of over $300 million.
NonFungible clarifies that their analysis focuses on NFTs of the ERC-721 standard, although this will inevitably evolve. In addition, only transactions from the Ethereum (ETH), Flow (FLOW) and Ronin (RON) networks are considered. Yet it offers a relevant overview the health of this sector.
👉 Also in the news – An upcoming lawsuit for the Bored Ape Yacht Club (BAYC)?
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