NonFungible recently came out with their quarterly market report and so we decided to break it down so you know what it means for the average creator, collector, and investor.
But don't be too quick to write off NFTs just yet. While the short-term outlook may be bleak at this point, there's no shortage of reasons to be optimistic about the future of the NFT space.According to The Block Research, NFTs' trading volume for the months of April, May, and June reached $12.22 billion. While this appears to be a decent figure, it's a significant drop from the $33.8 billion in Q1. This marks an almost 64% decrease in just three months.
Meanwhile, you probably still remember Beeple, don't you? The American digital artist who played a key role in driving up the interest for NFTs last year teamed up with no less than the Queen of Pop herself, Madonna, to launch the latter's first-ever digital art collection. It was a pretty big deal back in June.
In other words, a small number of very high-value transactions drove up the total resale volume for the entire quarter. This is not exactly indicative of a healthy and thriving market. So, while the total resale volume for Q2 may be lower than Q1, we believe this is not indicative of a declining market. Rather, it indicates a market that is becoming more efficient and decentralized.There exist a handful of segments that make up the NFT ecosystem. It's inaccurate, even unfair, to judge the whole space's performance based on a single segment's performance.1 - Art
For instance, not all players maintain or have existing wallets. The primary reason why gamers maintain active wallets is for trading purposes. Hence, you know there are players out there who are interested in the games, but they don't necessarily have or need an active wallet. While the art and gaming industry experienced stunted growth or decline, the metaverse segment is flourishing. This segment saw some incredible growth this year. In Q2, the total number of transactions increased, highlighted by the LAND sale by OtherDeed.