2023 NFT Market Analysis: An Insider Look | CoinMarketCap

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CMCReport: 2023 NFT Market Analysis 🔎 Most NFT projects are within the 100-1000 ETH market cap range ($0.2M to $2.1M as of April 2023). ▶️ For a detailed look into the NFT trends, visit our full report:

1. NFT trading volume in Q1 2023 increased sharply but then declined. This was due to Blur's incentives and airdrop. The number of NFT holders dropped to its lowest point in the last 12 months on April 19, with just 11,187 traders.

5. The trading volume and number of Bitcoin Ordinals market in the past four months have been on the rise, but its trading volume only accounts for 0.02% of the ETH market. Due to the slow transaction speed of Ordinals NFT, high cost, and limited application range, Ethereum NFT still occupies an advantage in the application range and speed.

Many blue chip NFT projects experienced a decline in floor price over time, with Bored Ape Yacht Club's floor price dropping by two-thirds from its peak of 153.7 ETH in April 2022 to below 50 ETH. From the end of 2021 to the beginning of 2022, the NFT market was dubbed as the historical "NFT Bull Market." However, since the second half of 2022, the market has largely been in a cooling-off phase. Given the community-driven nature of the NFT market, new concepts and trending topics will be essential to drive the next wave of growth.Ethereum remains the biggest Layer-1 for the NFT market in 2023 so far, followed by Solana, Polygon and BNB Chain.

From January to April this year, the percentage of real transactions on Blur and OpenSea is nearly tied and surpassed other marketplaces by a wide margin. These two marketplaces combined have dominated the current market in terms of data and social popularity.In terms of royalties, according to researcher Hildobby, it shows that OpenSea has long dominated the list.

Such thresholds also apply to the 10K ETH point. The chart below shows the number of projects in each trade volume range: once the 7-day trade volume of a project reaches 10K ETH, it enters a somewhat “elite” club where there’s only a very small number of projects at the top of the NFT market. In the first quarter of 2023, most flippers of NFT projects have been profitable, with February being the peak month. However, there are a few exceptions. Azuki has been maintaining a low and stable revenue status, while Moonbirds' profitability plummeted just after its release last year and even started losing money at the beginning of this year. In March, both BAYC and Moonbirds' profitability experienced a significant decline of about 30% to 50% compared to the previous month.

These data all point to us that blue chip NFTs in the market have undergone a significant turnover from January to April, which can be seen from:2. The distribution of blue chip holders are now more concentrated than before, and the proportion of whale holders is also growing.New NFTs lack a sustainable demand

Bitcoin Ordinals are Bitcoin’s version of NFTs, which are inscribed into the Bitcoin blockchain on a satoshi, the lowest denomination of a BTC. However, this comes with a slower transaction speed, higher cost, and limited applications. In contrast, ETH NFTs, built on Ethereum's blockchain, support smart contracts, have a faster speed, lower cost, and a broader range of applications.

According to data provided by Mint Trends, the Gemesis NFT experienced rapid growth in trading volume within the first two days of issuance, but showed a significant polarization in holding time and purchase amount. Approximately 50% of the players have held onto their assets since purchase, with relatively higher asset value. The other 50% of assets were resold within 24 hours of purchase.

The second peak in assets per capita is seen at the $20K point, which corresponds to projects such as Meebits, Cool Cats, and Otherdeed. The average asset value held by the core users of these projects is around $20K, which is a significant feature that sets these projects apart from others in the market.Just as the blue chip projects mentioned above capture the biggest portion of the market share, whales’ capital is also one of the biggest factors that dominates NFT market movements.

For major blue chip projects, buy according to rarity. For new blue chips, buy a combination of diversified NFTs.

 

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