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 or the interest in NFTs by country.
NFT sector suffers from declining profits
NonFungible.com, the website specialized in the analysis of the non-fungible tokens (NFT) market, unveils its latest quarterly report showing a significant drop in resale profit. Indeed, the second quarter of this year recorded more than 1.88 billion dollars of capital gains against 3.5 billion dollars in the first quarter, a drop of 46%.
The volume also follows a similar trend. After $10.7 billion in the first three months of the year, a decrease of nearly 25% brings the months of April through 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 also increased, from 30.9 days to 47.9 days.
An analysis by sectors
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 wallets in Q2.
In terms of traded volume, 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.
The first European country only comes in at 17 ᵉ position and that is the Netherlands with an interest score of 35/100. This shows the margin of progress that can be led on the Old Continent.
Poor results to be 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 worth taking a step back. NonFungible’s report points out that:
“However, if we take a step back, we note that interest is back to September 2021 levels, which was considered the golden age of NFTs at the time.”
On the other hand, it is also shown a strong centralization of this industry. The studio Yuga Labs actually concentrates 30% of the sales volume with these various projects in the second quarter. The arrival of the Otherside metaverse was moreover a big player in this result by generating a net profit of over 300 million dollars.
NonFungible points out that their analysis focuses on ERC-721 NFTs, although this is bound to change. 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 this sector.
