NFT trading volume in Q2 2022 fell by over 40% – Report

• Public interest in digital collectibles has begun to wane.
• NFT enthusiasts no longer have much motivation to buy NFTs.

Despite a special start this year, Q2 2022 was not as good as Q1 2022. There has been a decline in public interest in digital collectibles. Footprint analytics published a “Q2 2022 NFT industry” report on August 7, indicating a 41 percent drop in NFT trading volume in Q2 2022.

The report contains a summary and analysis of the aggregate data in the NFT industry for Q2 2022. According to the report, the lower prices in the crypto market have led to an influx into the NFT market for games, art and collectibles since the beginning of this year. Therefore, it was no surprise that active trading volume in the NFT market grew to a new peak of $8.6 billion.

However, NFT trading volume for Q1 2022 was $19.02 billion before falling to $11.26 billion in Q2 2022 in mid-May. The cooling of the NFT market coincided with the period when the crypto market suffered the consequences of the terra network and other global economic problems.

No motivation left to buy NFTs

It is worth noting that as of April 17, 2022, the total trading volume in NFTs had passed $54 billion in total value. This amount represents an increase of 222 percent from the value of $16.94 billion as of January 1, 2022. Another industry survey conducted in June showed that making money was the only reason why 64.3 percent of the surveyed audience bought NFTs -is.

Since more than 60 percent only bought NFTs to make money, the drop in NFT trading volume for Q2 2022 is not surprising after the contagion of the crypto market. There were two other reasons why people bought NFTs. 14.7 percent of respondents said they bought them to “join a community and enjoy,” while 12.4 percent said they were digital art collectors. However, 8.6 percent of this polled audience said easier access to games and tools was their reason for buying NFTs.

Q2 NFT financing is down 57 percent

Q2 NFT investments were $1.168 billion and accounted for 8 percent of total Q2 investments. However, there was a 57 percent decrease compared to NFT investments and financing in the first quarter. The report also revealed that the gaming sector received more funding than the NFT sector, with NFT marketplaces receiving the least funding from investors.

The metaverse category experienced the most noticeable change between Q1 and Q2. There is little or no “noise” about metaverse investments. Data from the execution of the sandbox project proves this fact. Many project teams have discovered that building a virtual world is not an easy task. It’s no wonder that many metaverse-related projects remain in the concept hype stage.

Solana’s NFT market magic Eden outperformed other independent NFT funding projects from each blockchain. In late June, Magic Eden raised $130 million in Series B funding, an unusual feat in NFT funding during a bear market period.