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NFT Sales Rise in Value but Drop in Users—Market Consolidation Ahead?
The non-fungible token (NFT) market has witnessed a stunning turn of events as sales volume surged 47.6% to $574 million, marking the second-highest monthly tally, while active buyers plummeted by 17%, suggesting a significant shift towards consolidation.
In July, NFT sales reached an unprecedented high, with the average sale value soaring to a six-month peak of $113.08. This dramatic increase is attributed largely to Ethereum’s remarkable price rally, which saw the asset rise by 62% and surpass $3,900. The ripple effect was felt across all top-10 collections by market capitalization, with every single project being based on the Ethereum blockchain.
The sales volume growth can be attributed to a surge in unique sellers, who rose by 9% month-over-month (MoM) to 405,505, creating an unprecedented imbalance between buyers and sellers. This trend is eerily reminiscent of pre-consolidation patterns observed in traditional markets, suggesting that the NFT market is poised for significant restructuring.
The stark disparity between sales volume growth and active buyer decline signifies a seismic shift towards whale-driven consolidation. As established collections dominate the scene, smaller chains are facing existential pressures due to Ethereum’s dominance, which now accounts for nearly 48% of total sales.
Notably, Polygon and BNB Chain have seen their sales volume plummet by over 50%, with Cardano ‘s impressive 102% growth hinting at new opportunities.
Source: crypto-economy.com
