NFT Market Q2 2022 Report

In recent times, the cryptocurrency market has experienced a significant decline. This situation affects many companies and causes them to go bankrupt. Moreover, this downward trend is also affecting the NFT sector. Statistical research firm NunFungile.com conducted a study to assess the performance of this industry in the second quarter of 2022. Here is the gist of this study.

Dollar revenue falls 25%

Between the first (Q1) and the second (Q2) of this year, the amount of dollars traded on the NFT market lost a quarter of its value. In fact, it was estimated at around $8 billion in Q2 compared to $10.73 billion in Q1. However, the decline is not only in dollar-denominated trading volume, but the majority of market performance metrics. In particular, the number of buyers (-25.41%), sellers (-35.88%) and, even more interestingly, the number of NFT sales during the year (-20.05%). At the same time, Yuga Labs, a publisher of NFT projects, takes about 30% of the total sales volume. This percentage is distributed among the various projects that the company has carried out so far. The rest of the market is supplied by other important players in the ecosystem and by resale between individuals. However, even though the market is currently in decline, interest in NFTs remains quite high.

Sales volume in the second quarter

460 million total profit

NonFungible’s report shows that despite the slowdown in the NFT market, a cumulative profit of $461 million was recorded during Q2. This result is obtained by subtracting the total resale loss ($1.43 billion) from the result of the resale profit ($1.89 billion). Although this result is positive, it is still a significant decrease from the result in the 1st quarter, where it was $2.35 billion. This corresponds to a decrease of 77.35%. This difference can be explained by the decrease in the investments made and the decrease in buyers.

Profit down and loss up

In the same way, it can be stated that the total profit in the second quarter fell by 46% and the total loss in the same period increased by 23%, this compared to the first quarter. This is because many NFT holders are forced to sell their assets at a loss under the pressure of the bear market. Thus, data from NonFungible reveals that NFT trading can generate up to $162 million in losses per week, compared to a profit of $27 million in the same time frame. This represents more than $100 million in cumulative losses recorded on a weekly basis. That said, the cumulative losses in other sectors (metaverse, game…) are less significant and do not exceed $10 million per week.

Weekly development of profit and loss on resale of NFT

Secondary market dominance

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

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

Considering all the above figures, the conclusion that can be drawn regarding the situation in the NFT markets in the second quarter of this year is obvious. The latter suffered a real drop compared to the previous quarter. On the other hand, it outperformed the crypto asset sector and worse than gamethe metaverse and blockchain tools.

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Junie MAFFOCK avatar

Junie MAFFOCK

I got into blockchain out of curiosity and stayed with it out of passion. I was amazed at the possibilities it offers through its various uses. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.

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