There is a crisis: In the new market report, Binance testifies that the NFT sector had a “difficult” last quarter. Declining trading numbers, declining demand, disorientation: the market for non-exchangeable tokens has lost feathers on several levels. Surprising: Ethereum took stocks, Solana caught up.
NFTs in crisis mode
According to Binance, third-quarter NFT revenue was down 73 percent from the previous quarter. Trading volume has “drastically” collapsed, the number of NFT buyers has collapsed. Even though a “slight increase” has been observed among investors since the end of the second quarter.
There have been more lucrative times for traders. According to Binance, the NFT 500 index fell about 28 percent in the third quarter — with “NFT prices nearing all-time lows.” A development that “coincides with the overall reduced activity in this area,” according to Binance.
A small glimmer of hope: “Throughout the third quarter, the number of transactions was higher than in 2021” – transaction volume picked up again in September after the sultry summer months.
Solana powers Ethereum
The most exciting development is currently taking place behind the scenes. Ethereum — by far the largest distributor of NFTs — shed 16 percent market share compared to the second quarter. Before this, Solana expanded its influence – according to Binance – by 13 percent.
While Ethereum still holds a 65 percent market share, “NFT sales for Solana continue to accelerate,” the report said.
A development that can be seen in the influence of the largest marketplaces. According to Binance, the market has “turned into an oligopoly” from a monopoly. The Ethereum-based trading platform OpenSea is still leading, but in particular Magic Eden, a marketplace based on Solana, is claiming more and more market share for itself.
Trends in the NFT market
The imbalance in the market leaves more traces on some NFTs than others. Especially with gaming-related NFTs, the share of which in the total volume has been shrinking in recent months. The same goes for metaverse tokens, for which there are currently hardly any buyers.
By market capitalization, social NFTs, including those from CryptoPunks or the Bored Ape Yacht Club, still make up the majority: about 80 percent.
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