NFT Sales Expected to Dip Below $1 Billion in May, But Activity Remains High

By 0xGorki 05/19/23 5:17 AM

In a recent report by DappRadar, it has been observed that the trading volume of non-fungible tokens (NFTs) is experiencing a decrease. However, despite this decline, the number of transactions and traders involved in the NFT market remains substantial, indicating a shift towards a smaller trader base.

The report, released on May 18th, highlights that NFT sales in May are projected to fall below $1 billion for the first time this year, with a total of $333 million recorded thus far. While this decline may raise concerns, it is important to note that the number of ‘Daily Unique Active Wallets (dUAWs),’ associated with NFT activity, has actually increased by 27% in May, reaching 173,000.

One contributing factor to this growth in dUAWs is the fervor surrounding the My Lady NFT collection, which consists of profile pictures styled in Japanese animation and was published by the digital art group Remilia.

Interestingly, the number of NFT sales in May remains notably high, currently standing at 2.3 million. Analysts at DappRadar, such as Sarah Gergelas, expect the overall figures for May to meet or even surpass the levels recorded in the previous month.

Gergelas explains that despite the decrease in trading volume, the rise in sales implies that the number of traders participating in the NFT market has not decreased; rather, their behavior has changed. This analysis suggests an increase in the presence of small traders, indicating a potential shift in the dynamics of the NFT market.

As the NFT market continues to evolve, these observations shed light on the changing landscape of trader behavior and provide insights into the ongoing trends within the industry. While trading volume may be on the decline, the sustained high number of transactions and traders showcases the enduring interest and engagement in the NFT space.

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