April NFT Monthly Report: Survival in the turbulent NFT market
By: lesley@footprint.network
Data Sources:Footprint NFT Research
Last month, the NFT market saw a peak in trading volume on April 5, followed by a sharp drop of 50% at the end of the month. Recently, the number of NFT sellers has consistently outnumbered the number of buyers, suggesting that there may be a significant oversupply in the market.
As the market continues to develop and grow, it is imperative for investors and traders to stay abreast of the latest developments and trends. Gain a better grasp of the opportunities and risks involved by examining key factors related to the crypto market and the NFT market.
The data for this report comes from Footprint Analytics' NFT Research page. This page provides an easy-to-use data panel, which contains the most important data indicators to understand the NFT industry, and is updated in real time. You can useclick hereFind the latest information on the NFT marketplace, individual projects, funding and more.
main findings
Crypto Market Overview
This April, the cryptocurrency market was ups and downs. In the middle of the month, driven by positive economic data, Bitcoin once climbed to $30,506, and the price of Ethereum also broke through $2,100.
Despite some market volatility, positive sentiment prevailed as the cryptocurrency market stabilized towards the end of the month, with the price of Bitcoin climbing back to $30,000 after a period of decline.
NFT Market Overview
On April 5, the trading volume of the NFT market reached a peak, but at the end of the month, there was a sharp drop of more than 50%.
At the same time, the number of NFT sellers still exceeds the number of buyers, indicating that the market may be facing an oversupply dilemma.
Data situation of NFT public chain and trading market
Currently, the Ethereum public chain dominates NFT transaction volume, but network congestion and Gas Fee may prompt users to turn to public chains such as Polygon as an alternative.
Blur and OpenSea are platforms that mainly provide services for high-end and retail traders respectively, but both are trying to enter each other's territory, so a more comprehensive platform may appear in the future.
Overview of NFT investment and financing
Although the number of NFT projects receiving financing has increased slightly, the decrease in funding shows that investors are cautious about investing.
Market moves such as Flow raising $3 million in seed funding for its NFT marketplace to grow the platform show how critical platform building and scalability solutions are for NFTs.
NFT hot spot this month
The integration of AI technology and NFT reminds people of the importance of NFT technology for copyright protection, and also emphasizes the value of human creativity in artistic expression. For the sustainable development of the industry, a balance needs to be struck between AI and NFT.
Crypto Market Overview
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On the macroeconomic front, official inflation rose to 5% in March, slightly below expectations of 5.1%. But the focus of investors has shifted to the potential recession risk, because the previous banking crisis exposed the fragility of the financial system in the market. Recent data also point to a macroeconomic slowdown, with the ISM Purchasing Managers Index falling to its lowest level since May 2020, for example.
Despite market volatility, bitcoin pushed back above $30,000 in late April, with positive sentiment across the cryptocurrency market.
NFT Market Overview
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according toFootprint Analyticsimage description
In addition, data from Footprint Analytics shows that the number of sellers in the NFT market still exceeds the number of buyers, indicating that there is insufficient potential demand for NFT.
Initially, the NFT market was fueled by the cryptocurrency market and celebrity endorsements, so people flocked into the market. However, because relatively few people understand NFT, it has led to a long-term oversupply situation in the bear market. In the future, we still need to observe and judge whether the fundamentals of the NFT market can continue to support its market growth and open up new opportunities in the long run.
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according toFootprint AnalyticsAccording to the data, Ethereum still accounts for the majority of NFT transaction volume, with a 96% market share. However, Ethereum only accounts for 44% of active users, while Polygon’s active user base is not far behind at 37%.
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Daily Transaction Volume on Polygon Chainimage description
Monthly Value by Marketplace - Distribution
fromNFT trading marketFrom a perspective, Blur still has an absolute advantage in terms of transaction volume, but OpenSea is even better in terms of transaction volume. Blur's dominance suggests that it is more suitable for high-value assets and professional users, with larger transaction sizes. On the other hand, OpenSea's transactions are relatively loose and scattered, with small but large numbers of transactions, which are more suitable for most people's ordinary daily small transactions.
Blur and OpenSea represent both high-end and small trader segments, but as the market as a whole develops, their competition is becoming more intense. The future trend may be the further integration of the high-end market and the small market to form a certain synergy effect. To predict the future development of these two platforms, it is necessary to continuously monitor their data performance.
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Monthly NFT Projects Fundraising Amount & Times
Although the number of NFT financing projects increased slightly from 8 to 11 compared to the previous month, the amount decreased, indicating a more cautious attitude from investors.
Many Buidlers have devoted their energy to the NFT trading market. Flow secured a $3 million seed round to build a Rollup-centric NFT ecosystem, highlighting the growing need for layer-two and scalability solutions to address Ethereum network issues. In addition, Amazon and other large companies have recently entered the NFT market, which is expected to increase market awareness and scale, but it will also increase industry risks.
In addition, we can also see that the music and entertainment industry is exploring the NFT market. For example, Muverse and Daniel Allan Entertainment also received financing this month, which shows that the NFT market is developing in a more diversified and multi-application direction.
NFT hot spot this month
As ChatGPT's fame grew, people began to explore the possibility of integrating artificial intelligence and NFT, because NFT is a typical example of the creative economy in the cryptocurrency world.
KOL 6529 discussed in depth on this topic. He believes that with the continuous growth of artificial intelligence-generated content, NFT-related traceability technology is becoming more and more important, which can help identify the source and ownership of content and protect the copyright of content creators. At the same time, the proliferation of AI-generated content has instead boosted the value of human-originated content. The uniqueness created by humans is difficult to be completely replaced by artificial intelligence, so AI technology will make original works more rare and precious. Therefore, in today's digital content overload, the creator's self-branding ability has become particularly critical. Only by allowing more people to understand and recognize their works can creators stand out in the fierce content competition.
Commercial content creation can be more easily replaced by AI, as they are often created to meet specific needs and can be efficiently generated by AI. On the contrary, the value of a work of art lies in the author's unique expression of thoughts and emotions, which is difficult for artificial intelligence to replicate.
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write at the end
The NFT market continues to develop rapidly, with new trends emerging every month, and this April is no exception. Although the trading volume soared at the beginning of the month and then declined, such fluctuations also let us see that the NFT market is still very dynamic and promising.
As the market continues to mature and evolve, it is crucial to keep up with the latest developments. By understanding the opportunities and risks associated with NFTs, investors and traders can make informed decisions to fully utilize the potential of the NFT industry to achieve their goals.
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