Largely, the NFT story lately has been no story at all. Feeling as though the general zeitgeist has moved on from NFTs, I was curious about what the data actually says.
At peak, volumes reached $12B in Q1 2022 across marketplaces on Ethereum. Volumes since have fallen 82% USD denominated and 70% ETH denominated
However, NFT volumes have been surprisingly resilient if we zoom out to pre-cycle days. Volume is still up 49x USD denominated and 31x ETH denominated
At peak, monthly trades hit 2.5M in January 2022. Monthly trades are down 14% since the peak, but still up 77x since Jan 2020
At peak, monthly unique Ethereum NFT traders hit 592k. Monthly unique traders are down 20% since the peak, but still up 77x since Jan 2020
Cumulatively, ~3M unique addresses have traded ETH NFTs, 3x since Jan 2022 (~1M)
Interestingly, activity seems to have peaked in early 2022, indicating the market response lagged talk of a turning market
In conclusion: the NFT market while very down, is significantly above pre-cycle levels. This makes sense as the last cycle created significant awareness that has not disappeared. The volume of trades is still quite significant, though the actual number of traders has always remained very niche. The reduction of trades/traders is also much less than the reduction in volume, meaning dedicated NFT traders have remained in the market just with smaller volumes.
Source: The Block. USD-denominated volumes were calculated between Q4 2020 and Q4 2022. ETH-denominated volume calculated between Jan 2020 and Jan 2023.
*Orange represents the quarter is still in progress
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