NFT Market Q2 2022 Report

In recent times, the cryptocurrency market has experienced a significant decline. This situation has hit many businesses, causing them to go out of business. Besides, this downtrend has also affected the NFT sector. The statistical analysis company NunFungile.com conducted a survey to assess the performance of this industry in the second quarter of 2022. Here is the main of this study.

Dollar sales volume down 25%

Between the first (Q1) and the second (Q2) of this year, the amount of dollars sold in the NFT market lost a quarter of its value. In fact, it is estimated to be around US $ 8 billion in Q2, compared to $ 10.73 billion in Q1. However, the decline is not only in dollar-denominated trade value, but in most market performance metrics. Especially the number of buyers (-25.41%), sellers (-35.88%) and, even more interesting, the number of NFT sales during the year (-20.05%). At the same time, Yuga Labs, a publisher of NFT projects, took almost 30% of the total amount of sales. This percentage is distributed among the various projects that the company has done so far. The rest of the market is supplied by other important players in the ecosystem and also through sales between individuals. However, even though the market is currently declining, interest in NFTs remains high.

The number of sales in the second quarter

460 million profit

NonFungible’s report shows that despite the slowdown in the NFT market, a cumulative profit of $461 million was recorded in Q2. This result was obtained by subtracting the total sales loss (1.43 billion USD) from the resale revenue (1.89 billion USD). Although this result is positive, it is a significant decrease compared to the result obtained in Q1, when it amounted to 2.35 billion dollars. This corresponds to a drop of 77.35%. This difference can be justified by the reduction of investments made and the reduction of buyers.

Profits decrease and losses increase

In the same vein, it can be observed that the total profit in the second quarter decreased by 46% and the total loss in the same period increased by 23%, this is compared to the first quarter. This is because many NFT holders were forced to sell their holdings at a loss under the pressure of the bear market. Thus, data from NonFungible reveals that NFT trading can generate up to $162 million in losses per week, compared to profits of $27 million in the same time frame. This represents more than $100 million in cumulative losses recorded each week. As such, the cumulative loss of other sectors (metaverse, play…) is not very important, not more than 10 million dollars per week.

Weekly evolution of the amount of profit and loss when trading NFT

Second market dominance

The report shows a concentration of total dollar transactions in the secondary market compared to the primary market which follows a ratio of 80-20. On the other hand, in terms of sales volume, there is a certain balance between the two market segments. Moreover, due to reduced demand, few NFT projects saw the light of day in the second quarter. In fact, the total supply increased by only 4%. However, the number of sales in the main market was as strong, with more than 600,000 sales recorded in the first days of June.

Sales volume and dollars sold for primary and secondary markets (Q2 2022)

Considering all the above figures, the conclusion that can be drawn about the state of the NFT markets in the second quarter of this year is clear. The latter suffered a real decline compared to the previous quarter. On the other hand, it is better than the crypto-asset sector and worse than playthe metaverse and blockchain utilities.

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Junie Maffock avatar

Junie MAFFOCK

I came to blockchain out of curiosity and stayed with it out of passion. I am amazed at the possibilities it offers through its various use cases. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.

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