A look at the data behind the recent NFT Marketplace decline
Explore the recent decline in NFT marketplaces and find out why data is key. Find out what caused the decline and how to stay informed in the ever-evolving world of crypto investing.
As the world of cryptocurrency continues to evolve and expand, navigating the market can be a daunting task for newcomers and seasoned investors alike. With so much volatility and uncertainty in the market, it can be difficult to determine which trends are worth following and which are just temporary blips on the radar.
One of the latest trends to gain attention in the crypto world is the rise in popularity of non-fungible tokens (NFT). These unique digital assets have exploded in popularity over the past couple of years, with some selling for multi-million dollars at auctions such as the Donald Trump NFT collection.
As we head into 2023, the data presented from the start of the year indicates that things should be looking very good for NFT art collections and especially for NFT games.
However, more recent data sheds a different light on the situation. NFT marketplaces have experienced a decline in numbers.
NFT Marketplaces in 2023
According to data from Dune Analytics, NFT marketplaces are currently experiencing lowest number we have seen in a long time. Daily users and sales have declined across all NFT marketplaces, reaching new lows last July 2021.
The NFT Data platform, SeaLaunch, has observed incredible declines in NFT buyers and sellers in recent weeks. A recent tweet from twitter user, Giancarlo, has given us information on the matter.
Macro scenario
So, now that we have a clear picture of the data, what is behind this recent downturn?
According to experts, data is the key to understanding the situation. While it is not clear why sales and users have fallen on many NFT marketplaces, the data has suggested that a possible “macro scenario” has affected trading.
A trading macro scenario refers to a broader economic or market trend that affects trading patterns on a larger scale. This may include factors such as changes in government regulations, global economic conditions or changes in consumer behaviour.
One possible explanation for the decline in activity is the high gas prices associated with crypto trading. In addition, the latest tax season may create liquidity problems for investors, affecting their ability to participate in the market.
Despite these challenges, there are still some bright spots in the data. ETH has proven to be quite stable since the start of the month. Meanwhile, Web3’s decentralized exchange, Uniswap, has gained a significant amount of users over the past few weeks.
Final thoughts
While the recent decline in NFT marketplaces may be worrying for some investors, it is important to remember that the world of crypto is constantly evolving. As more data becomes available, it will be easier to determine whether this is a temporary blip or a longer-term trend. In the meantime, staying informed and keeping an eye on the data can help you navigate the often-intimidating world of crypto investing.
Edmond is a passionate writer for video games, GameFi and Web3. He has worked for top GameFi companies and video game/crypto news sites.
