Interpretation of the NFT industry in July: Games and music NFTs lead the growth, and Oppen sets off a boom
Original author: lesley@footprint.network
In July 2023, volatility in the NFT market continued, with trading volumes trending downward. However, growth in areas such as gaming and music NFTs has been eye-catching. The number of unique users participating in these segments is increasing, reflecting the resurgence of these areas.
This comprehensive report aims to provide a comprehensive insight into the NFT ecosystem in July 2023. The report delves into key metrics such as market capitalization, transaction volume, user engagement, and the delicate balance of buyer and seller activity on major chains such as Ethereum and Polygon. An in-depth analysis of leading platforms, exchanges, and NFT financing markets.
In addition to data, the report highlights important milestones and breakthroughs. For example, the story of artist Jack Butchers inspirational journey and creation of Openen NFT as a heartfelt tribute to ThreadGuy. These stories go beyond numbers and statistics to highlight the cultural weight and collaborative spirit of the NFT space, even in times of market volatility.
The data for this report comes from Footprints NFT research page. This page provides an easy-to-use dashboard with the most critical statistics and metrics to keep up with the latest happenings in the NFT industry, updated in real time. You can clickhereFind the latest information on deals, projects, financing and more.
Overview
Crypto Market Overview
Despite the price surge, Bitcoin ended July at a lower price of $29,230, down approximately 4% from its opening price of $30,587 on July 1.
NFT Market Overview
The blue-chip index was in a downtrend, pointing to deepening bearish sentiment in the market.
In July, the NFT market showed a buyer/seller ratio of 149.13%, with a total of 299,983 buyers and 201,155 sellers, exceeding the ratio of the past 90 days.
Public chain and NFT trading market
At present, the growth momentum of the NFT market mainly comes from practical application cases such as games and practical platforms, rather than traditional artworks and collectibles.
Blurs volume share is trending down, from 64.32% to 57.94% YoY.
NFT investment and financing situation
The NFT market has been particularly sluggish in recent months, with just three funding rounds totaling $15.85 million in July.
Despite the downturn in the financing market, capital is still actively flowing into the NFT field, such as the combination of music and NFT.
Hot Topic of the Month: Openen
The event showcased the spirit and camaraderie of the community, demonstrating the importance of recognizing creators in the fast-growing NFT space.
Highlights of this month
Get Protocol Raises $4.5M to Challenge Ticketmaster with NFT Tickets
NFT lending platform Gondi goes live with $5.3M in funding led by Hack.vc
Born for culture: Jack Butchers custom ThreadGuy Opepen sparks buzz
Mastercard Web3 Music Accelerator Releases Five NFT Tracks
Beatport launches an NFT marketplace focused on electronic music
Sothebys New Generation Art auction fetches $1.2 million in 24 hours
Polygon 2.0 lays the foundation for decentralized governance
Crypto Market Overview
Throughout July 2023, the value of Bitcoin will mainly fluctuate in the range of $29,000 to $31,000. Bitcoin reached a one-year high on July 13, reaching $31,400, its highest value since July of the previous year.
However, despite the price surge, bitcoin ended July at a lower price of $29,230, down about 4% from its July 1 opening price of $30,587.
In particular, sluggish summer trading activity and a lack of short-term tailwinds may have contributed to Bitcoins decline.
However, as CEO of decentralized futures exchange SynFuturesRachel LinAs noted, Bitcoins drop below $30,000 may be just a brief correction in the overall bullish trend. This view reinforces bitcoins consistent trading range between $29,000 and $31,800 since mid-June, unfazed by factors such as interest rate hikes, inflation concerns and other macroeconomic worries.
NFT Market Overview
NFT Volume & Transaction & Unique Users in July
The market value of the NFT market has remained stable at about $100 billion this month. However, as Azuki prices fell, overall trading volume dropped significantly, indicating that market activity may be cooling down.
On a more positive note, the number of unique users involved with NFTs increased slightly this month, with 431,817 unique users compared to 408,548 in June.
The blue-chip index was in a downtrend, pointing to deepening bearish sentiment in the market.
Major blue-chip NFT projects such as Azuki and Bored Ape Yacht Club (BAYC) have seen significant price drops. BAYC even dropped below 30 ETH this month.
This market volatility reflects investors increased risk aversion and decreased confidence in the NFT market. Investors may become more cautious and reluctant to make riskier investments, moving to safer assets or reducing their overall participation in the market.
In July, the NFT market showed a buyer/seller ratio of 149.13%, with a total of 299,983 buyers and 201,155 sellers, exceeding the ratio of the past 90 days.
The increase in the number of buyers during this period can be attributed toPlanet IXand Galaxy projects. Specifically, as of July 23, the number of NFT buyers on Planetix reached 4,932, while the number of sellers was only 59, indicating strong demand for NFTs and high buying enthusiasm. Games such as Planet IX remain the main driving force behind the active NFT market.
Events and activities from projects like Planet IX and Galaxy also led to a huge spike in the number of unique NFT users between July 21 and 23.
Made By Apes
In addition to the impact of games and task platforms on the rise of NFT, the NFT project itself is also noteworthy.
One notable example is that Yuga Labs, the creator of the widely known BAYC, recently launched an on-chain verification solution “Made By Apes”. The platform solves the challenge of verifying and cataloging intellectual property created by BAYC members. By providing a unique on-chain license, BAYC and Mutant Ape Yacht Club (MAYC) members can use Yuga-produced content on their products and services"Made by Apes"logo.
Degods and Pudgy Penguins have also launched similar initiatives this month. These moves mark a major shift in the recognition and promotion of the value of intellectual property in the NFT space. By granting exclusive intellectual property to NFT owners, these projects aim to foster creativity and innovation within their communities. This move further boosts the appeal of NFTs, elevating them from simple collectibles to valuable assets with practical, real-world applications. As the NFT market continues to evolve, these intellectual property-focused initiatives could play an important role in shaping its future.
Public chain and NFT trading market
Ethereum’s dominance in the NFT market continues to grow, accounting for a staggering 98.03% of total transaction volume. However, the absolute volume of NFT transactions on the Ethereum chain hit a two-year low in July at just $660.1 million. The overall NFT market is experiencing a period of reduced trading activity.
In July, the number of independent addresses participating in NFT transactions on the Ethereum chain hit a two-year low of 163,240. Interestingly, Polygon surpassed Ethereum in terms of unique users, reaching 185,350.
PLANET IX
Judging from NFT buyer activity on Polygon, the top two platforms driving market development arePlanetIX and Galaxy, the number of buyers in July was 39, 145 and 16, 231 respectively. This shows that the current growth momentum of the NFT market mainly comes from practical application cases such as games and practical platforms, rather than traditional artworks and collectibles.
Amid the current market slowdown, demand for NFTs related to images and art culture has weakened, while NFTs with practical uses have shown greater resilience.
In the middle of this month, Polygon released abreaking news——Polygon 2.0. The introduction of ZK-powered Layer 2 networks will create a blockchain that can achieve both scalability and interoperability, which is worth looking forward to in the near future.
Monthly Volume by Marketplace - Distribution
As far as the NFT trading market is concerned, Blur continues to dominate the market in terms of large professional transaction volume. However, its share is trending down, falling from 64.32% to 57.94% in the past two months. During the same period, X2Y2 and LooksRare increased slightly.
Monthly Trades by Marketplace - Distribution
In terms of number of transactions and number of users, Opensea continues to hold the majority share and keep growing, which has been the case for a long time.
NFT investment and financing situation
Monthly NFT Projects Fundraising Amount & Times
The NFT market has been particularly sluggish in recent months, with just three funding rounds totaling $15.85 million in July.
NFT ticketing company Get Protocol has successfully raised $4.5 million in seed funding from investors including Flow Ventures and Tezos Foundation.
Get Protocol aims to disrupt the ticketing industry dominated by Ticketmaster, which wields considerable power and lucrative revenue. NFT is seen as a solution to problems in the Web2 technology space, with advantages such as smoother event queuing, anti-crash measures, and better participant data collection. In addition to Get Protocol, other NFT-based startups such as YellowHeart and Tokenproof have also entered the ticketing space.
NFT lending platform Gondi has gone live after raising a $5.35 million seed round led by Hack.vc. Gondi allows users to stake blue-chip NFT collectibles on Ethereum as collateral for loans or financial applications. The platform aims to improve NFT lending by providing hassle-free lending options within the Web3 ecosystem.
Notably, the NFT industry is characterized by rapid changes in sentiment and trends. While the current downturn may be a reflection of a cautious environment, evolving technological advancements and increasing institutional involvement may trigger a new wave of interest and activity in the near future.
Despite the sluggish funding market, capital is still actively flowing into the NFT space. Of particular note this month has been the surge in activity in the combined music and NFT space. This trend shows that people are increasingly aware that NFT is developing, not limited to the original intention of aggregating community culture.
MasterCard
This can be seen in initiatives such as Mastercard Web3 music accelerator releasing a number of NFT tracks, and Beatport launching an NFT trading marketplace focused on electronic music.
It must be recognized that for the NFT market to develop in a sustainable and prosperous manner, it must excel in both practicality and cultural engagement. Only by effectively balancing these two aspects can NFTs become valuable tools with lasting influence in multiple fields, further solidifying their position in the ever-evolving digital asset landscape.
Hot Topic of the Month: Openen
The NFT market is shifting toward practical use, but is still largely centered around cultural engagement.
This month, Opepen has made waves in the market. OpenSea even changed its Twitter account to OpepenSea with the caption For Culture.
Jack Butcher, the NFT artist who created Opepen, created a custom ThreadGuy Opepen NFT edition, setting off a wave of excitement in the Web3 community.
Michael Jerome, also known as Threadguy, is known for being at the center of polarizing discussions about Web3, attracting a lot of attention in the growing Web3 community.
MAYC and Opepen
Inspired by the color scheme of his Mutant Ape, Butcher designed a unique Openen specifically for ThreadGuy, known for his involvement in the Mutant Ape Yacht Club (MAYC).
On July 17, Jack Butcher launched"Opepen Threadition", the purpose is simply to prove its provenance and redistribute some economic energy to those who have contributed greatly to this ecosystem. All proceeds from this campaign will be used to support ThreadGuy’s efforts and express gratitude for his contributions to the crypto world. As of August 7, the NFT has been minted 67,155 times.
It is worth noting that the impact of this incident extends beyond the scope of NFT. It highlights the remarkable unity and selfless spirit that exists within the community and underscores the profound importance of recognizing and celebrating creators in the ever-evolving NFT space. This incident highlights the sincerity and kindness of the community and demonstrates the importance of recognizing creators in the rapidly developing NFT field. Many see Butcher’s move as a reflection of the true and idealistic nature of the crypto community—one that values shared culture over pure economic gain.
People say: For culture.
Note: The above research report data include:
Chains: Ethereum, Polygon, BNB Chain, Cronos, Optimism
Markets: Opensea, LooksRare, Blur, X2Y2, Cryptopunks, Rarible, SuperRare, Foundation, Decentraland, Aavegotchi, Element, Era 7, the Sandbox, Minted
This article was contributed by the Footprint Analytics community.
The Footprint Community is a global, mutually supportive data community where members use visual data to work together to create communicable insights. In the Footprint community, you can get help, build links, and communicate about blockchain-related learning and research on Web 3, Metaverse, GameFi and DeFi. With many active, diverse, and highly engaged members inspiring and supporting each other through the community, a worldwide user base has been established to contribute data, share insights, and drive community development.
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