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NFT: Resale profit is down 46% since Q1

by Patricia

In its latest quarterly report, NonFungible.com highlights the drop in net profit on non-fungible token (NFT) sales. The survey also shows other interesting statistics such as a breakdown by sector and interest in NFTs by country.

The NFT sector is suffering from declining profits

NonFungible.com, the website specialising in the analysis of the non-fungible token (NFT) market, unveiled its latest quarterly report showing a significant drop in resale profit. Indeed, the second quarter of this year saw over $1.88 billion in capital gains compared to $3.5 billion in the first quarter, a 46% drop.

Volume also follows a similar trend. After $10.7 billion in the first three months of the year, a decrease of almost 25% brings the months of April to June to $8 billion in volume.

Other interesting data in the report also shows a 23% increase in sales at a loss. At the same time, the average shelf life has also increased from 30.9 days to 47.9 days.

An analysis by sector

The analysis report also shows a breakdown by sectors. For example, collectible NFTs, notably represented by Bored Apes Yatch Club (BAYC) or CryptoPunks lead the way, with 330,909 active portfolios in Q2:

Figure 1: Number of active wallets

Figure 1: Number of active wallets


In terms of volume traded, this category is also far ahead, with nearly $3.79 billion. In comparison, the metaverse sector, in second place, performed at $1.25 billion.

However, it will be interesting to note that while gaming “only” recorded $389 million in volume, it is the sector with the most sales. It accounts for over a million, neck and neck with collectible NFTs. This shows a strong disparity in unit prices.

In terms of global interest in NFTs, Asian countries are clearly ahead according to Google Trend:

Figure 2: Country ranking of the query

The top European country only comes in at 17 ᵉ position and that is the Netherlands with an interest score of 35/100. This shows the room for improvement that can be made on the Old Continent.

Poor results put into perspective

While the drop in profit on the sale of NFT since the first quarter and other negative data suggest that the sector is doing poorly, it is important to put things in perspective. This is highlighted in the NonFungible report:

“However, if we take a step back, we notice that interest is back to the level of September 2021, which was considered the golden age of NFTs at the time. “

On the other hand, it also shows a strong centralisation of this industry. The studio Yuga Labs effectively concentrates 30% of the sales volume with these different projects in the second quarter. The arrival of the Otherside metaverse was also a big part of this result, generating a net profit of over $300 million.

NonFungible points out that their analysis focuses on ERC-721 NFTs, although this is likely to evolve. Furthermore, only transactions from the Ethereum (ETH), Flow (FLOW) and Ronin (RON) networks are considered. Even so, this provides a relevant overview of the health of the sector.

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