NFT markets are out of balance, with sellers dominating: Data
Recent data has revealed that throughout April, the non-fungible token market has consistently seen more sellers than buyers, without a single exception.
According to data from analytics platform NFTGo, there were only 7,907 buyers on April 26, while there were 8,641 who attempted to sell their NFTs.
Days before, on April 19, the NFT market hit its second lowest point in the last twelve months, with just 5,893 buyers – a slight increase from the lowest recorded date in the last twelve months, which was June 18, 2022, with 5,343 buyers.
On April 5, while there were more buyers in the market — 18,495 — there were also 36,423 sellers.
Based on the data, there has not been a single day in April where the number of buyers exceeds the number of sellers in the NFT market, indicating a potential lack of demand that could be a concern for thosplanning to sell its NFT soon.
The last recorded day buyers exceeded sellers was March 11, when there were 9,756 buyers and 9,754 sellers.
The turbulent market conditions have been met with various social reactions on Twitter.
Ovie Faruq, the co-founder of Canary Labs, stated in a tweet on April 26 that the NFT market is “not working” at the moment.
In the last year, daily NFT traders ranged from 20-60k.
In the last few days it dropped to 7k
This market does not operate an ATM. pic.twitter.com/akqKuWHmxr
— Mando (@rektmando) 26 April 2023
Cointelegraph previously reported that the NFT market experienced a decline on March 12, after the collapse of Silicon Valley Bank caused fear among traders.
Before the bank’s collapse, NFT trading volume fluctuated between $68 million to $74 million on March 10; However, on March 12, they fell to $36 million.
The fall was also accompanied by a 27.9% drop in daily NFT sales between March 9 and March 11.
Related: Utility and long-term profit main reasons for NFT purchases: CoinGecko study
According to a March 20th CoinGecko report, the top six NFT marketplaces saw an increase in wash trading in February for the fourth month in a row, with a total volume of $580 million.
The report revealed that the market witnessed a 126% increase from the previous month’s volume of $250 million – with the report attributing the overall recovery of the NFT market as the reason for the increase.
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