Despite What You Heard, the NFT Market is Far From Dead

While there’s no denying that famous NFT collections such as Bored Ape Yacht Club have declined in value recently, the market as a whole isn’t going anywhere.

You’ve probably heard by now that NFTs are over.

Just like that. Sales have declined. Interest has dwindled. And everyone talking about NFTs just a few months ago has moved on to the next big thing.

But here’s the thing: the NFT market is far from dead. It’s still going strong. Don’t believe us? We have data to back these claims up.

NFT Sales Aren’t Doing That Bad

While it’s true that NFT sales have slowed down during the first few months of 2022, it doesn’t mean that the entire industry is dead.

In May 2022, NFT sales volume reached a healthy $3.7 billion. Sales volumes have been down significantly since April, but considering that crypto assets as a whole are in a bear market, the decline was to be expected.

DappRadar recently released the latest version of their Industry Report, which showed that when measured in their native tokens like ETH, marketplace volumes aren’t nearly as much as they seem on the surface.

Image Source: DappRadar 

You can see this just by looking at OpenSea’s trading volume. Last month, the largest marketplace in the NFT sector generated roughly 950,000 in ETH. Compared to April, that number was down less than 7%. In USD, the volume decreased by 25%.

Solana NFTs, on the other hand, had one of their best trading months in history. The second most popular NFT-hosting blockchain experienced an increase of 13% across all platforms last month.

New NFT Collections Creating New Interest

While “blue-chip NFTs” like the popular BAYC have seen their value decline sharply over the past few months, things have been looking up for new NFT collections.

Collections like Moonbirds and Okay Bears have been the biggest reasons why the industry has performed so well this year.

You also have the free-to-min collection, Goblintown, which has been taking the NFT world by storm. The collection has generated more than $31 million since launching at the end of MAy 2022.

The demand for Goblintown has been immense and has pushed its floor price from 0 to 6 ETH at the time of this writing.

Where Will the Market Go From Here?

Image Source: CoinGecko 

You need to understand one thing, NFTs are crypto assets. The NFT market is just as volatile as the cryptocurrency market. When Ethereum goes down, NFT sales usually go down as well, and vice-versa.

The NFT market is carving out a strong niche in the gaming world. According to data collected by CoinGecko, nearly 36% of NFT owners mainly use their assets for gaming purposes.

So we wouldn’t be surprised if the market bounces back in a big way later this year. As a result, the second half of 2022 could be very good for NFTs.

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