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NFTs: resale profit cut by six in Q3

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In its latest quarterly report, NonFungible.com highlights the fall in resale profit in the NFT market. The latter fell by 84%, resulting in a net loss on the balance sheet of $450 million.

NFT profit down sharply in last quarter

NonFungible.com, the specialist in the analysis of the non-fungible token (NFT) market, today published its latest quarterly report in which we can see a significant drop in resale profit.

Indeed, while this metric amounted to 2 billion dollars in the second quarter, it reached barely 327 million dollars between June and September. This corresponds to a drop of 84%, or a division by a factor of 6. This decline is also reflected in the trading volume, which also fell by 77%. The reason for this is that it fell from 7.36 billion to 1.67 billion dollars.

With such data, the quarterly balance sheet therefore shows a net loss of 450 million dollars, which would be a first for the market according to the report. It should be noted, however, that the study only takes into account the following three blockchains:

  • Ethereum (ETH);
  • Ronin (RON);
  • Flow.

These values do not take into account the activity on other networks such as Solana (SOL) for example.

Nevertheless, in terms of the number of gross sales, the volume fell by only 5%. These sales represent almost 10.9 million transactions. On the other hand, the analysis found exactly 1,173,650 active addresses, a decrease of 17%. However, the average retention time of an NFT increased from 27.5 to 31.1 days.

Is this really a cause for concern?

Despite a more than mixed quarterly balance sheet, we can highlight some positive points. Rightly so, the $780 million in losses on resale, which is a burden on the result, is in fact almost half the amount of the previous quarter. It is therefore this too small proportion of sellers making a profit that is driving the NFT market into the red.

On the other hand, after a sharp fall at the beginning of the second quarter, the curves showing the different categories of portfolios active on the market seem to find a point of stabilisation:

Figure 1: Evolution of active wallets on the NFT market

Figure 1: Evolution of active wallets on the NFT market


As for the popularity of searches related to the term “Non Fungible Token” on Google Trends, the graph below shows that after a meteoric rise at the end of 2021, the popularity of searches related to the term “Non Fungible Token” has fallen just as sharply. The score ranges from 1 to 100 and is currently on an annual low, stabilised at 12:

Figure 2: Popularity of the search

While NFTs still seem to be more resilient, they are still correlated to the cryptocurrency market, which may explain some of this decline.

Nevertheless, this is necessary to clean up the ecosystem after the great euphoria. This will then allow serious projects to develop on a good basis, without being influenced by the ambient noise.

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