NFTs Buyers Dip For A Second Straight Month

NFTs sales have dropped dramatically in March, in contrast to the booming crypto market, but one industry expert thinks there’s no need to panic just yet.

In March, the number of unique monthly non-fungible tokens (NFTs) buyers fell by more than 30%, marking the second straight monthly dip since the January high.

According to NFTs data aggregator CryptoSlam, NFTs sales fell below US$2.2 billion in March

According to records, the last time this happened was in July 2021, when sales totaled US$1.20 billion.

The dip comes as the cryptocurrency market has recovered to conclude the month with a market capitalization of more than $2 trillion dollars. For the majority of March, the larger market was trading below that level.

CryptoSlam strategist Yehuda Petscher has come to believe an inverse correlation between the two asset classes. As NFTs are often denominated in cryptocurrencies, investors are more likely to buy NFTs when the absolute value of crypto is lower, he opined. 

“The buyers are still there — I think they’re just being a little more discerning with what they put their funds into,” Petscher. “People are just kind of waiting and holding and seeing if the scene’s changing a little.”

The NFT community was still among the hottest headlines in the month of March, as Bored Ape Yacht Club (BAYC) creator Yuga Labs teased its own metaverse Otherside featuring popular NFT avatars. NFT avatars represent their owners in the virtual world. 

One of the world’s most popular NFTs avatar collections, BAYC defied overall trading activities in March, more than doubling its sales and transactions in the month. 

The World of Women Galaxy collection was launched on March 26, and topped US$70 million in sales in less than a week. 

Up-and-coming blockchains are due to shake up the pecking order in April, thus NFT trading activity may not remain inactive for long. OpenSea, the world’s largest NFT marketplace, has confirmed the long-rumored integration of the Solana blockchain, the world’s third-largest in terms of sales volume. The date for the integration has now been set for April.

“It’s fantastic for Solana” said Petscher, who expects OpenSea’s acceptance to unleash a torrent of previously isolated NFT collections in Solana’s decentralized environment.

Ronin, the world’s second-largest blockchain, was hacked for more over US$600 million, making it one of the most valuable hacks in the industry’s history. The Ethereum sidechain has postponed a much-anticipated update for the blockchain game Axie Infinity, which is the world’s most popular NFT collection in terms of sales volume.

Sky Mavis, the creator of Axies, has stated that its Origin upgrade would be delayed until April, with the goal of attracting more players to its GameFi economy by providing free starter Axies, which presently cost up to $300 in crypto.

“I’m pretty enthusiastic about what the bull will look like if this is a bear market,” Petscher added. “Even in the quiet moments, it’s fairly exciting.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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