This article comes fromDappRader, Originally by Sara Gherghelas

Odaily Translator |

In the third quarter of 2022, the entire encryption industry fell into a trough, and we saw a series of problems surfaced such as intensified market competition, a decrease in the number of new buyers and sellers, and an increase in the risk of fraud. At the same time, NFT seems to have withstood the decline of the bear market. With the entry of multinational companies such as Starbucks, this emerging field has reinjected a lot of vitality. Next, let us use this latest report to understand the NFT market dynamics in the past period of time.

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Q3 NFT Industry Overview

As of the end of the first quarter of 2022, the total transaction volume of NFT has exceeded 12 billion US dollars, and the sales volume has reached 28 million. However, after entering the second quarter, with a series of events such as the collapse of the Terra ecosystem and the ensuing CeFi liquidation, the transaction volume of the NFT market fell by 33% ($8 billion), and the sales volume fell by 29% (2023 thousands of pens). The high degree of economic uncertainty and encryption events experienced in the second quarter led to a sharp drop in NFT transaction volume in the third quarter (only $2.5 billion was generated), but market demand remained stable. Even in the case of a sharp decline in NFT transaction volume, independent NFT traders The number (more than 2.2 million) is still above the level, and more importantly, compared to the third quarter of last year, this indicator has also increased by 36%.

While investors with large portfolios (often referred to as "whales") are still driving NFT sales, the increase in the number of new buyers shows that there are still many people who are curious about NFTs and want to invest in this asset class. Increase investment.

Next, by analyzing some blue-chip projects in the NFT category, let us delve into the status and subsequent trends in this field.

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1. Digital collection NFT

There is no doubt that digital collectibles still dominate the NFT market to a large extent. In the first quarter of 2022, the total transaction value generated by NFT digital collections exceeded 9 billion US dollars. It fell by 49.5% in the second quarter to $5 billion, and in the third quarter it plunged a further 84% to $713 million, the lowest quarter since the first quarter of 2021. It is worth mentioning that 52% of NFT digital collections are PFP avatars.

In terms of public chains, Ethereum is still the blockchain network that generates the most NFT transaction volume, providing huge support for the vaguely most valuable NFT assets and innovative markets and aggregators (such as OpenSea, X2Y2, Gem, etc.). The NFT transactions on the Ethereum chain accounted for 91% of the total NFT transactions on the entire network ($645 million).

Q3 2022 saw a 93% drop in transaction volume compared to Q3 2021, but CryptoPunk #5822 was a highlight of the period with a record 8,000 ETH (approximately $23.7 million) and the sale was The largest transaction in the history of CryptoPunks NFT, the NFT was purchased by Chain CEO Deepak Thapliyal (Deepak.eth).

In addition, the NFT transaction volume of the Flow blockchain accounted for 2.54%, and the NFT transaction volume of the Ronin blockchain accounted for 2.53%. It is worth noting that the total transaction volume of NFT on the ImmutableX chain increased by 87% compared with the previous quarter, making it the only blockchain with positive growth in NFT transaction volume this year.

On the other hand, thanks to the rich expansion solutions provided for Web3 games and GameFi DApp, ImmutableX's NFT transaction volume accounted for 23.12% and Ronin's NFT transaction volume accounted for 18.81%, which has become a major player in NFT transactions. market.

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2. Blue chip NFT

Among the top 11 NFT projects (shown below), Yuga Labs has four projects: CryptoPunks, Bored Ape Yacht Club (BAYC), Otherdeeds for Otherside and Mutant Ape Yacht Club (MAYC), which traded in the second quarter amounted to more than $237 million. But in the third quarter, the transaction volume of the top 11 blue-chip NFT series fell by 88% to just over $334 million, which is not much different from the second quarter of 2021.

In fact, if we break it down to the month, we will find that the transaction volume of blue-chip NFT in June was 203 million US dollars, a sharp drop of 83% from the 1.2 billion US dollars in May. However, even though the total transaction volume has fallen, the floor price of the top 11 blue-chip NFT series has not fallen sharply, which is roughly the same as the floor price before Terra's crash.

Since these NFTs not only represent digital collections, but also symbolize access passes that become everyone's identity, the "average number of days held" indicator is particularly important. In this regard, CryptoPunks ranks first with an "average hold" of 239 days, followed by BAYC with 129.8 days, and MAYC and Otherdeed with roughly the same average hold days of 96.9 days. Additionally, Azuki had the lowest value for the “Average Holding Days” metric, suggesting that Azuki NFTs may be viewed more as investment vehicles rather than long-term “loyal” collections held by owners.

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3. Digital Art NFT

Since January 2021, more than 4.5 million digital art NFTs have been sold, with a total transaction value of more than $3 billion. It is said that collectors have turned to the digital art market due to the difficulty of purchasing physical artworks during the COVID-19 epidemic, of which Beeple, Pak, Fewocious and several other artists are major contributors to the market, and have also pushed NFTs to the mass market.

However, there were some bright spots in the field of digital art NFT in the third quarter. For example, the Museum of Modern Art (MoMA) in New York has begun to consider spending $70 million to purchase NFT-related artworks.

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4. Game NFT

Valued at over $8.6 billion, GameFi registered 847,000 daily unique active wallets (UAW) in August and is expected to grow exponentially over the next few years. Many popular blockchain-based games, such as Axie Infinity, Gods Unchained, and Aavegotchi, use NFTs for interaction, and major game companies such as Ubisoft have also incorporated NFTs into their game designs.

However, not all traditional game communities welcome NFT. For example, three game companies, EA Games, Mojang Studios and Team, have announced that they will no longer use NFT in games.

In the first quarter of 2022, the total transaction volume of game NFTs exceeded US$1 billion, which fell by 53% in the second quarter, and fell further to US$71 million in the third quarter, a drop of as much as 84%. In terms of sales volume, the market trend is also not optimistic: in the first quarter of 2022, the sales volume of game NFTs was close to 12 million, in the second quarter it dropped to 6 million, a drop of 50%, and in the third quarter it fell further to only 3.3 million Pen.

It should be noted that although the total transaction volume and sales of blockchain game NFT have dropped sharply, it still attracted more than $4 billion in investment.

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5. Fashion and luxury NFT

The first NFT "experiment" in fashion took place in the footwear market, when RTFKT Studios launched a pair of virtual sneakers of their own brand, and luxury giant Gucci also released a virtual shoe called "Gucci Virtual 22" , This trend has even been transferred to gaming platforms. For example, League of Legends has announced a partnership with Louis Vuitton, and British fashion giant Burberry has jointly released wearable NFT with Web3 gaming platform Blankos.

However, there were some bright spots in the fashion NFT market in the third quarter, such as Tiffany & Co's launch of 250 CryptoPunks-themed "NFTiff" collections, which generated $12.5 million in revenue.

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6. Sports NFT

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Summarize

Summarize

Although no one can accurately predict the future of the global cryptocurrency market, NFT is attracting a wider range of market participants, and blockchains such as Solana, Flow, and Tezos are also promoting NFT to adopt blockchain emerging technologies in industries such as games and entertainment.

It is worth mentioning that many brands have begun to actively adopt NFT technology. Ticketmaster just cooperated with Flow to integrate NFT in the ticket business; Starbucks also announced the launch of "Starbucks Odyssey", which combines the Starbucks Rewards loyalty program with the NFT platform. Allowing its customers to earn and buy digital assets to unlock exclusive experiences and rewards, such as perks or free drinks, is trying to use Odyssey to reward loyal customers more broadly, while also building a more engaged community.