The non-fungible token (NFT) market recorded major gains in 2021, and a recent post by the Wall Street Journal said that these gains were now futile. The WSJ article said that the NFT market was collapsing despite recent metrics showing that the market continues to report high sales volumes.
WSJ says the NFT market is collapsing
Despite the Wall Street Journal saying that the NFT market was “flatlining”, some of the top collections in the market were still reporting incredible volumes. These five collections accounted for over $1 billion in primary and secondary NFT sales.
WSJ garnered data from Nonfungible, an NFT market analysis platform, showing that the number of NFT sales had declined by 92% since hitting a record high in September last year. Wallet addresses active in the Ethereum NFT space had also dropped by 88% since hitting a record high in November last year.
NFT market is still strong
Despite this article by the WSJ, other data shows that the NFT market is still strong, and it has a strong chance of continuing to attract more trading volumes. Data from Dune Analytics shows that NFT users and transactions were significantly higher than what was reported by Nonfungible.
Other data also shows that volume per day in US dollars for Ethereum NFTs over the past week was at the highest recorded level since February. OpenSea, the largest NFT marketplace, saw volumes of $550 million on May 1 alone.
Additionally, sub-sectors within the NFT space are also emerging, and while some areas in the NFT space were recording a decline, some were recording notable gains. The Nansen analytics platform that categorizes NFT collections depending on their type shows that “Blue Chip” NFTs such as the Bored Ape and Mutant Ape were recording higher volumes than art and gaming tokens.
The trend of the NFT market to record high volumes for the top collections was also highlighted by NFTstatistics.eth. The platform published a chart towards the end of April proving that large popular collections drove the Ethereum NFT market.
A report from Nonfungible revealed a significant increase in the number of sales and active wallets on May 1. The data was at the highest levels reported since November 8 2021. The data correlated with the Otherside NFT project launched by Yuga Labs, which contradicts the WSJ article about NFT sales declining.
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