The state of NFTs: key trends during the bear market

by James · October 30, 2022

The recent bear market has had telling effects on every crypto sector, and new data suggests that the NFT sector has also been affected.

Dune Analytics data shows that trading volume for NFTs is now down 97% from the beginning of the year. In January, trade volume peaked at $17 billion, but the figure has now dropped significantly to $470 million.

The decline is not surprising given that there was a clear sign of it even before the bear market set in. Since trading volume peaked in January, interest in NFTs has gradually declined with a drop in Google search trends and the number of daily unique wallets.

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Blue chip NFTs sales volume is falling

What makes this decline even more apparent is how the Ethereum Names Service sales volume has increased by 133.95% in the last 30 days. Compared to that, the sales volume of blue chip NFTs like Bored Apes, CryptoPunks, Azuki, etc., is in the red.

However, Bored Ape still has the highest sales among NFTs in a month, but the trading volume is down by 42.96%. CryptoPunk is down 21.24% and Mutant Ape is down 29.95%, according to available data.

Meanwhile, the recent market crash has also played a role in reducing the US Dollar value of these NFTs. In ETH, the top 100 NFTs by market cap saw their value fall by 27%, but in USD the decline is 44%.

On-chain metrics remain positive

A DappRadar report has shown that despite the significant slowdown in the market, on-chain metrics suggest that the NFT industry remains bullish.

According to the report, the number of unique retailers in 2022’s third quarter increased by 36% compared to the previous year.

The report also highlighted the growth of other NFT-compatible blockchain networks. In the third quarter, Ethereum NFTs account for 91% of total trading volume, but only 26.2% of sales.

Even with the decline in interest and value of crypto assets, the market still witnessed the sale of CryptoPunk #2924 for 3300 ETH, which is $4.4 million, just a few days ago. This makes it the fourth most expensive CryptoPunk.

Solana dominates GameFi

While interest in NFTs in general may have fallen, the GameFi market is seeing growing interest. As of August, the number of unique active wallets (UAW) registered daily in this sector was 847,000, and Solana saw a continuous increase in UAWs with a growth of 21% on a monthly basis.

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