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WSJ says ‘the NFT market is collapsing’ however the information says in any other case

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An article within the Wall Street Journal has claimed gross sales of non-fungible tokens (NFTs) are “flatlining” — in the identical week that the highest 5 collections alone accounted for greater than $1 billion in main and secondary gross sales.

The article cited information from NFT market evaluation platform Nonfungible suggesting the variety of NFT gross sales has fallen by 92% since an all-time excessive in September 2021. Wallets energetic within the Ethereum (ETH) NFT market have been additionally mentioned to have declined by 88% since a excessive in November 2021.

“The NFT market is collapsing,” the article concluded.

Red line exhibits variety of gross sales with quantity on left y-axis, white exhibits energetic market wallets, quantity on proper y-axis. Source: Nonfungible

However, onchain information from Dune Analytics’ dashboard counsel that the NFT market continues to be sturdy, with data displaying that NFT customers and transactions are a lot increased than what’s reported by Nonfungible.

Dune Analytics whole energetic NFT customers
Dune Analytics NFT transactions per day

Analytics additionally present that quantity per day in USD on Ethereum NFTs over the week is among the highest seen since February with common market OpenSea seeing almost $550 million in quantity on May 1 alone.

Dune Analytics. Source.

Analysis from Tom Schmidt, companion at enterprise capital agency Dragonfly Capital exhibits an identical story when targeted on OpenSea transactions and USD quantity.

Sub-sectors inside the NFT market are rising and whereas some areas of the oversaturated market are in a downturn, others are seeing main good points.

Nansen’s analytics platform which indexes NFT collections by kind present that “Blue Chip” NFTs — established and extremely prized manufacturers such because the Bored and Mutant Ape Yacht Club and Azuki tokens — are far outperforming artwork or gaming tokens.

The Nansen Blue Chip-10 Index monitoring the highest 10 NFT tasks is up 81% 12 months so far (YTD), whereas comparatively the indexes monitoring the highest artwork and gaming NFT collections are respectively down 39% and 49% YTD.

This phenomenon of NFT market capital consolidating into the highest collections was identified in an evaluation by NFTstatistics.eth who shared a chart in late April displaying the highest 5 collections are driving the Ethereum NFT market.

“There’s clearly a trend right now that five or six of the most successful projects are sharply outperforming while the rest are flat to down,” pseudonymous NFT market analyzer NFTstatistics.eth informed Cointelegraph.

Related: OpenSea top-10 NFT tasks soar as new liquidity enters the market

The information from Nonfungible exhibits a spike on May 1 with the variety of gross sales and energetic wallets that day hitting numbers not seen of their information from November 8 2021 straight correlating with the record-breaking (and Ethereum breaking) Otherside metaverse land sale by Yuga Labs once more contradicting the declare that NFT gross sales are “flatlining.”

It’s not clear why the Nonfungible information the WSJ relied on is misaligned with Dune’s information, nonetheless it may very well be because of the inclusion of gross sales quantity from P2E gameAxie Infinity by Nonfungible.

Volume for the favored play-to-earn hit an all-time excessive of over $40 million on November 4 2021 earlier than a gradual decline to its present ranges of round $500,000 in accordance with CryptoSlam information.

But the collapse in reputation of a P2E recreation as NFTstatistics.eth says “is an extremely different message from ‘NFTs are collapsing.’”

While the present debate focuses on Ethereum NFTs, Solana is quick changing into a preferred blockchain for such a asset and is the second-largest blockchain behind Ethereum for NFT gross sales quantity.

Last week, the Solana NFT mission Okay Bears topped OpenSea’s 24-hour gross sales tracker for the primary time, and holds fourth place behind the Mutant Ape Yacht Club in 7 day gross sales quantity on CryptoSlam with over $47 million value transacted.

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