In July 2023, the NFT trading volume witnessed a significant decline, attributed to the volatile state of the blockchain and cryptocurrency market. Sales figures dropped by 29%, while the number of transactions decreased by 23%, according to a recent analysis by DappRadar. Despite this overall downturn, a glimmer of hope emerged from the realm of gaming NFTs towards the end of the month.
The NFT market showcased remarkable diversity with various projects such as DMarket’s Go skins, Gods Unchained’s gaming NFT cards, Sorare’s fantasy sports NFTs, and the innovative Watch2Earn program supported by NFTs. These NFTs extended beyond Ethereum and were also present on platforms like Mythos Chain, ImmutableX, and Binance.
Amidst the challenging market conditions, it’s important to recognize the progress NFTs have made. Even during this period of decline, there are opportunities for strategic investments in NFTs. While the market has been struggling, there are indications of eventual recovery.
For instance, the CyberKongz Genkai mint experienced initial difficulties selling all 9,000 NFTs on Ethereum, leading to a reduction to 3,000 units. Notably, the Ronin faction successfully sold all 3,000 of their NFTs within an hour, revealing the presence of potential collectors.
Cryptocurrency market volatility posed challenges for NFTs. Bitcoin-associated ordinals faced difficulty in sales, dropping to a ranking below the top five on the blockchain. The blockchain industry as a whole experienced a decline in rankings due to limited functionality and incentive for collectors to trade Bitcoin-related NFTs.
July 2023 saw the lowest monthly sales total, amounting to $493 million, since June 2021. Despite this decrease, the market remained relatively close to the previous week’s totals. Noteworthy NFT collections were analyzed:
DMarket achieved substantial sales of around $5.2 million through skins for games like Counter-Strike: Global Offensive and Team Fortress 2.
ImmutableX’s popular game, Gods Unchained, generated impressive sales of $4.8 million as players engaged with its immersive gameplay.
Sotheby’s new generative art platform debuted with Vera Molnar’s NFT drop, resulting in price increases driven by market demand.
Binance’s PLAYNFT collection ranked high, generating $1.7 million in revenue, especially through their innovative Watch2Earn platform.
While Ethereum sales increased by 18%, the total sales in July ($271 million) were the lowest since June 2021. Binance secured the third position with $6 million in sales, closely following AIWorld Nodes and PLAYNFTs.
Polygon’s reported $5 million in sales preceding the announcement of Palm blockchain’s transition to Polygon was not yet reflected in volume.
Mythos and ImmutableX occupied the fifth and sixth positions, demonstrating the capability of gaming NFTs to compete with other major blockchains.
Bitcoin’s weekly sales dropped below $5 million, placing it as the ninth most profitable cryptocurrency.
In an interesting turn, CryptoDickButts, a prominent NFT collection, announced the transfer of project administration to the largest holder of their new NFT series.
In summary, the NFT market faced challenges in July 2023 due to market instability, yet a resurgence is anticipated, much like previous years. Gaming NFTs stand as a promising sector, buoyed by the launch of engaging games. Despite current setbacks, the diverse and evolving nature of the NFT landscape suggests a potential rebound in the future.