Crypto is having a hard time breaking away from the macro sentiment and continues to range. NFTs are affected by this as their illiquid nature amplifies this feeling.
When it comes to NFTs, Ethereum remains king. It has been a wild week where Ethereum bottomed at around $1,423 and topped out at $1,619. Depending on your exchange, this is where the daily 50 MA is. Ethereum did hold better than the rest of the market. The upcoming merge is helping ETH so far in terms of price action. However, the macro environment still doesn’t look very good, with equities continuing to sell off. Let’s take a look at the latest NFT news.
NFT Market Cap and Volume
During the week, we saw more projects managing to sell out during minting. However, most fail to stay above mint price after the initial hype. Market cap is much like before but with a small decrease of 2%. Volume, on the other hand, has dipped extensively. It is nearly 20% down from the previous seven days. This is significant as last week there was an additional decline of around 9%.
Many speculators were hoping for an August NFT pump. Historically, this was the case. With August now over, no significant pump or new money entered into the NFT space. The same speculators are now hoping for September with a run-up to the end of the year to turn bullish. As summer ends and the colder months return, residents in the northern hemisphere will be more at home rather than outdoors. More people in front of their computers is usually better for the NFT market overall and could bring back more volume over the coming weeks. We will see.
Holders Holding Strong
The negative volume across the NFT space is mirrored against the holder and trader numbers. Looking back across 30 days, buyers have certainly gone missing. This is meaningful as we are casting back over a longer time period. Could it be that buyers were outdoors enjoying the sun? It is probable there is more to it than that. Potentially, the macroeconomic events and the relative illiquid nature of NFTs.
Sellers are classified as a unique address having sold at least one NFT in the specified time period. It is no surprise that this number is low as buyers are not around. Traders reflect this as the appetite has gone awry. Furthermore, the hay days of quick and easy profits seem to be a distant memory.
The number of holders is interesting. Uplift is small but could align with the narrative of builders continuing to build during this bear market. The effect of the continued building is the project ecosystems expanding and community engagement growing.
Solana NFT User Growth
Whilst Ethereum-based NFTs have struggled, the opposite is true of NFTs in the Solana space. In a bull market, the volume cannot equal Ethereum NFTs and the same is true in a bear market. When it comes to Solana NFTs, the user numbers is what is surprising. There is a significant increase in user adoption. Across the various marketplaces, all user numbers are up. If we were to aggregate across these marketplaces, it is a 60% increase in the number of unique addresses that DappRadar tracks. This is positive news in an otherwise uneventful space.
Quickfire NFT News Roundup
To wrap up this week’s NFT news, here are some other stories that have made waves in the NFT space this week.
• The Financial Accounting Standards Board (FASB) has not included NFTs in its cryptocurrency accounting project.
• a16z crypto launched “Can’t Be Evil” NFT licenses to improve copyright vulnerabilities.
• Dapper Labs partnered with Ticketmaster to release tickets as NFTs.
- Ticketmaster also tapped the Flow blockchain to let event organizers issue NFTs tied to tickets.
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