NFT Market Becomes More Active, But Prices Drop

In June, activity in the non-fungible token (NFT) market increased after it bottomed in May, while average prices seem to be still dropping.

For example, yesterday, the number of weekly NFT sales reached 36,050, compared with a low of 12,976 in May, per Nonfungible.com data. Meanwhile, the value of weekly sales was USD 25.8m yesterday, it dropped to almost USD 10m in June.

There were also more unique buyers (more than 12,000 in the past week) and more sellers (almost 5,900).

However, according to Dune Analytics data, the average secondary price of NFTs such as Cryptopunks, Hashmasks, and the average artwork price on marketplaces such as SuperRare keep dropping as the whole crypto market is still trying to recover from a recent sharp selloff.

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Meanwhile, NFT sales volumes across some protocols decreased from the previous quarter. As examples, DappRadar‘s Q2 2021 report gave FLOW, which is mainly driven by NBA Top Shot, which was seen dipping in users and volume, 17% and 67% respectively quarter on quarter, as well as Cryptopunks that transacted over USD 95m by the end of the first quarter, then plummeted to USD 16m during June.

In either case, in total, NFT sales approached USD 2.5bn in the first half of 2021, up from USD 13.7m in the first half of 2020, Reuters reported , citing DappRadar.

Per the firm, while the last quarter was “an absolute rollercoaster,” despite the crash in crypto prices, users continued to be involved in the industry, particularly NFTs and decentralized finance (DeFi).

The top 10 NFT sales for the week until July 4 include the Internet inventor Tim Berners-Lee NFT sale through Sotheby’s for USD 5.4m, and a Cryptopunks sale for USD 1.06m, while Reddit auctioned its first individual NFTs for USD 238,650 and higher, according to DappRadar.

Meanwhile, DappRarad also stressed that Binance and Tezos (XTZ) are “making inroads” into the NFT space: Tezos launched its own marketplace in March, while the Binance Marketplace is “definitely something to monitor in the upcoming months,” especially when they launch additional projects from arts, games, music, etc.
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Learn more:
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– Why NFTs Aren’t Just for Art and Collectibles
– Consider These Legal Questions Before Spending Millions on NFTs

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