Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

After first quarter frenzy, NFT market shows signs of stabilising

EconomyMay 04, 2021 08:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Humanoid robot Sophia, developed by Hanson Robotics, holds a brush during a demonstration before her non-fungible token (NFT) artwork is auctioned, in Hong Kong, China March 16, 2021. REUTERS/Tyrone Siu/File Photo

By Elizabeth Howcroft

LONDON (Reuters) - After a frenzied first quarter for non-fungible tokens (NFTs), the market for blockchain-based digital assets ranging from art and videos to songs and tweets slowed in April, platform and product data shows.

An NFT artwork fetched $69.3 million at Christie's in March, in the first ever sale by a major auction house of a piece of art that does not exist in physical form.

While anyone can view an NFT, whose ownership status is recorded on blockchain, the buyer has the status of being the official owner, a kind of digital bragging right.

A surge in interest in NFTs in 2021 is attributed to people spending more time online with cash to spare during lockdown.

Meanwhile, cryptocurrency price gains over the past few years have also created a new group of crypto-rich speculators looking for the next big thing.

But after explosive growth in February and March, NFT sales volumes generally dipped in April.

On OpenSea, a major NFT marketplace, monthly sales were $93.6 million in April, having hit almost $150 million in March, compared to $95 million in February and $8 million in January.

A year ago volumes were steady at around $1 million a month.

Graphic: NFT sales on OpenSea NFT sales on OpenSea https://graphics.reuters.com/CRYPTO-NFTS/DATA/dgkplyroxvb/chart.png

Sales data from NonFungible.com, a site which aggregates transactions from the Ethereum blockchain, shows weekly trading volumes in April were below March's peak, but substantially higher than pre-2021 levels.

And on Nifty Gateway, an NFT marketplace owned by Gemini, monthly sales of $60.9 million were less than half of the $144 million in March, but significantly more than in January when then totalled $8.75 million.

Gemini is owned by virtual currency entrepreneurs Cameron and Tyler Winklevoss.

Graphic: Weekly NFT sales volume https://graphics.reuters.com/CRYPTO-NFTS/DATA/gjnpwdqnbvw/chart.png

The U.S. National Basketball Association's Top Shot marketplace, which allows fans to buy and trade NFTs in the form of video highlights, also saw its explosive sales in the first quarter of the year slip in April.

But participation remains high, with 324,000 unique buyers in April, up from 30,800 in January.

Graphic: NBA Top Shot sales https://graphics.reuters.com/CRYPTO-NFTS/DATA/xegpbxzxdpq/chart.png

Although individual "moments" fetching six-figure sums have caught headlines, Top Shot said that the average sale price in April was $65, compared to $157 in March, $182 in February and $80 in January.

Overall, sports-related NFTs saw the most sales in April, followed by games and NFTs related to online virtual worlds known as the "metaverse", NonFungible.com said.

Graphic: Number of NFT sales by category https://graphics.reuters.com/CRYPTO-NFTS/DATA/oakpewdkypr/chart.png

After first quarter frenzy, NFT market shows signs of stabilising
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email