New Coined Ethereum NFT Profitable by 67%
According to the tweet from Nansen, only 67% of new NFTs minted last month are profitable. But this is not what they mean, as any new NFT percentage is always profitable in the first month, and then it declines after a few months. In reality, the new NFT coins have been in decline since the summer. NFTs minted in May are 65% lower than in April, which is the lowest since June 2021.
Decline in sales and active traders of NFT
The downward trend in the NFT market shows that people lack interest in the field. Not only are sales declining, but there is also a decline in active traders. According to the data from Dune Analytics, markets such as OpenSea have shown a drop in active traders. In January it was 359.2K, and the number dropped to 149.4K in May.
Last month, NFT sales on the Ethereum blockchain fell more than 15%. The 30-day sales volume shows sales of $416.8 million. Number of buyers is 65.5K and sellers are 55.4K. However, both figures are declining.
In terms of sales volume, Ethereum is the top blockchain. Compared to Bitcoin, Solana and Polygon, they have a sales volume of $40 million to $180 million.
The NFT market is falling
Ethereum, relatively speaking, is influencing the market in terms of buyers and sellers, as evidenced by the OpenSea data. This influence is due to the blockchain regulating the major NFT projects running on ERC-721 tokens. It has a highly secure network that provides high exposure to a large market.
The NFTs are sold at higher prices, but sometimes the network traffic causes a large backlog of transactions. Transaction fees are also high, making it expensive for users to create NFTs. The most popular NFT collections in Ethereum are Cryptopunks and Bored Ape Yacht Club (BAYC).
On the other hand, Solana which is still lacking, provides a cheaper platform and allows rapid minting of non-fungible tokens. PoS reduces the technical error. The most common Solana NFT collections are Degenerate Ape Academy, although the high traffic leads to network problems making it inaccessible to users.
Precisely, NFT’s market has been falling since June 2021. Still, NFT profits tend to be higher in the first few days after the coins, before decreasing in the following days.
As it is associated with cryptocurrency, the decline in cryptocurrencies can be considered as a reason for the decline in investor interest, while congestion and high gas taxes account for some other reasons behind the decline in the market.
