DappRadar NFT Report reveals bullish on-chain metrics
Amidst endless speculation about the “death of NFTs”, DappRadar’s NFT report revealed that NFT sales are still growing and Immutable X is growing in prominence.
In fact, while Ethereum still leads with 26.2% of total NFT sales, Immutable X – its Level 2 solution – captured 23.1% of NFT sales in Q3.
Despite the drop in trading volume in Q3, which was down 75% from the previous quarter, the number of sales is estimated to reach 21.1 million by the end of Q3 – a 6% increase from Q2.
Furthermore, the report revealed that the number of unique NFT traders increased by 36%, compared to Q3 2021.
Thus, the NFT market is still growing and has a lot of potential, but currently there is a rapidly decreasing amount of money being traded in NFT.
The report concludes: “The NFT market will continue to expand in 2023, given the number of brands starting to implement NFT and the number of unique merchants this quarter (2.2 million), but the road ahead will be rocky.”
Ethereum and Immutable X
One thing is for sure, DappRadar’s analysis illustrates the emerging NFT force that is irreplaceable X.
Layer 2 Ethereum Solutions increased its NFT trading volume by 87% from the previous quarter.
Irreplaceable X is an NFT gaming-focused platform and according to analysis, the potential for Web3 gaming is very strong.
In contrast to Ethereum, the market capitalization of its top 100 NFT projects decreased by 44% ($19 billion) in USD terms from the previous quarter. However during the same period, the market cap in terms of ETH based NFTs as a whole fell by only 27% (12.2 million ETH).
However, a significant NFT purchase on Ethereum was made by the chain’s CEO Deepak Thapliyal, who bought record-breaking cryptopunk #5822 for 8,000 ETH (about $23.7 million). This sale is the largest CryptoPunks NFT purchase in history.
Bluechips are collectible
Interestingly, the DappRadar report found that the floor price of the blue chip collection is maintaining the same value, although the trading volume has decreased by 88% in 3.
In fact, floor prices rose in several top blue chip projects, such as Azuki, which rose 43.18% (11.44 ETH) in September, and Cool Cats, which rose 15.83% (2.78 ETH).
On the other hand, Yuga Labs’ four projects, along with Mutant Ape Yacht Club’s 2.14% (14.30 ETH) gain since August, have reduced their floor prices. Compared to August, CryptoPunks is down 5.19% (63.95 ETH), Bored Ape Yacht Club is down 7.36% (73 ETH), and Otherdeed is down just 0.57%.
Digital Art
Digital art remains a market with great promise, and contemporary art institutions are beginning to acquire art produced as NFT. Furthermore, digital art is an important component of the expanding virtual world labeled ‘metaverse’. Nevertheless, overall trade volume in the third quarter was $58 million, a 72% decrease from the previous quarter. Sales fell 43% from the previous quarter, to 258,000.
Blockchain Gaming NFTs
The blockchain gaming market with a value of over $8.6 billion, and 847,000 daily unique active wallets (UAW) registered in August, saw the total trading volume of NFTs drop sharply from $1 billion in Q3 2022 to just $71 million in Q3. Additionally, sales numbers fell from 12 million to 3.3 million in Q3.
Fashion and Luxury NFTs
Despite the decline in trade volume in Q3, fashion and luxury NFTs still have huge potential. A prime example of this was the Tiffany & Co NFT collection, which produced each of its NFTs for 30 ETH ($50,000) and sold out in 20 minutes, generating $12.5 million in revenue.
Sports NFT market
The sports NFT market is currently managed by industry powerhouses Soare and NBA Top Shot.
In Q3, the total business volume of both projects was more than $18 million, a 61% decrease from the previous quarter. Despite the seemingly tenuous financial situation, the DappRadar report concludes that the sports market for NFTs is still strong. Furthermore, Sorare will benefit greatly from the 2022 World Cup starting in November.
The effect of the merger
Finally, DaPradar also highlighted the famous Merge – Ethereum’s proof-of-stake move. The global app store for decentralized applications concluded that Merge, which reduced Ethereum’s energy consumption by 99.95%, was a positive step. The report emphasized: “This is a significant advance for the Ethereum blockchain and for NFTs in particular, successfully refuting one of the most common NFT objections.”
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