In its latest quarterly report, NonFungible.com highlights the decline in net profit from sales of non-fungible tokens (NFTs). This study also shows other interesting statistics, such as a breakdown by sector or interest in NFTs by country.
The NFT sector is suffering from declining profits
NonFungible.com, the site specialized in analyzing the market for non-fungible tokens (NFT), reveals its latest quarterly report showing a significant decrease in profit on resale. The second quarter of this year registered more than 1.88 billion dollars in capital gains against 3.5 billion dollars in the first quarter, i.e. a decrease of 46%.
Volume also follows a similar trend. After $10.7 billion during the first three months of the year, a decrease of almost 25% bringing the months of April to June to 8 billion volumes.
Other interesting data from the report also shows a 23% increase in loss sales. Parallel to this the duration of the conversation the average also increased from 30.9 days to 47.9 days.
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An analysis by sector
The analysis report also shows a breakdown by sector. E.g collection of NFTs, notably represented by the Bored Apes Yatch Club (BAYC) or CryptoPunks lead the way, with 330,909 active portfolios in the second trimester:
Figure 1: Number of active wallets
In the volume trade, this category is also far ahead with almost 3.79 billion dollars. 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 sector that most sales account. That represents more than a million, neck and neck with the collection of NFTs. This shows a strong differences in unit prices.
In terms of global interest in NFTs, Asian countries are very clearly ahead according to Google Trend:
Figure 2: Country ranking of the query “Non-Fungible Tokens” on Google Trends
The first European country arrives first 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 into perspective
If the drop in profit on the sale of NFT since the first quarter and the other negative data suggest that the sector is doing poorly, it is worth take into account. This is what the NonFungible report points out:
“However, if we take a step back, we note that interest is back to the level of September 2021, which was considered the golden age of NFTs at the time. »
On the other hand, it is also shown strong centralization of this industry. The Yuga Labs studio effectively concentrates 30% of sales volume with these various projects in the second quarter. The arrival of the Otherside metaverse was also a major player in this result, generating a net profit of over 300 million dollars.
NonFungible clarifies that their analysis focuses on NFTs of the ERC-721 standard, although this is bound to evolve. Additionally, only transactions from the Ethereum (ETH), Flow (FLOW) and Ronin (RON) networks are considered. Nevertheless, it offers a relevant overview health in this sector.
👉 Also in the news – An upcoming lawsuit for Bored Ape Yacht Club (BAYC)?
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