There is a crisis: M New Market Report documented binance It was a “rough” quarter for the NFT sector. Low trading numbers, weak demand, confusion: the non-fungible token market has lost feathers on several levels. Surprise: Solana has acquired Ethereum shares.
NFTs are in crisis mode
According to Binance, NFT sales in the third quarter were down 73 percent from the previous quarter. Trading volume has collapsed “dramatically,” and the number of NFT buyers has collapsed. Even if a “slight uptick” was noted among investors since the end of the second quarter.
There have been more profitable times for traders. According to Binance, the NFT 500 Index fell around 28 percent in the third quarter — with “NFT prices near all-time lows.” The development “coincides with overall lower activity in this area,” according to Binance.
A small glimmer of hope: “In the entire third quarter, the number of deals was higher than in 2021” – transaction volume picked up again in September after the slow summer months.
Solana powers Ethereum
The most exciting development is currently happening behind the scenes. Ethereum – the largest distributor of NFTs – gave up 16 percent of the market share compared to the second quarter. Solana expanded his leverage for this – according to Binance by 13%.
While Ethereum still commands a 65 percent market share, “Solana’s NFT sales continue to accelerate,” according to the report.
Evolution reflected in the impact of larger markets. According to Binance, the market has “turned into an oligopolistic” from a monopoly. Ethereum based trading platform open c It’s still leading, but in particular Magic Eden, a Solana-based market, is claiming more and more market share for itself.
Trends in the NFT Market
Market imbalance marks some NFTs more than others. Especially with gaming-related NFTs, whose share of the total volume has continued to decline over the past few months. The same applies to metaverse tokens, for which there are hardly any buyers.
Measured by market cap, social NFTs, including CryptoPunks or Bored Ape Yacht Club, still make up the majority: around 80 percent.
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