In this article we take a look at the NFT market place as whole. We pick up on the current sentiment and where it could go next.By Shuab Akhtar -August 12, 2022
With Wednesday’s positive reaction to CPI data, the NFT market saw liquidity coming into the space. However, we must not forget that although the numbers were encouraging they are still very high.
Bitcoin is crawling to make new higher highs. Ethereum is more convincing, but we are not seeing the surge of volume that lines us with confidence. Let’s discover the most important NFT News from the second week of august:
1) OpenSea’s Daily Volume is Increasing
OpenSea’s daily volume was just shy of $30 million. This is important as it is the highest number for the past 30 days. Market cap is also up 5.24% month on month. This is in line with the positive sentiment across crypto. Historically August is a favorable month for NFTs and many are hoping this year is the same.
Source: NFT Go
2) NFT Transactions Remain Consistent
When looking at the volume of transactions, Wednesday’s spike was higher than any of the days in the 2nd half of July. Transaction count has had a good start to August but still remains lower than the first 2 weeks of July. Granted, there are a few more days to go until 1st half of August is over. We have to see over the coming days if the positive sentiment stays and gives this relief rally a bit more room to grow.
Whilst crypto markets hit their lows in June, the NFT market remained extremely cautious. Therefore, the confidence came back when traders realized there were bargains to be had. Whilst some needed liquidity others took advantage of the opportunity. Broadly speaking transaction volume has ranged between 40k and 60k.
Source: Dune Analytics
3) Are NFT Buyers Coming Back?
Looking at the Buyers vs sellers chart there is certainly an uptick. Could it be that sellers are cutting their losses and moving into other collections? Or could it be that buyers are slowly returning to the NFT space? The charts are telling us supply is outstriping demand which could signal that there are bargains still to be had.
Since May, only twice have buyers dipped below the 20k region. It feels that those that are in the NFT Market are seasonsed traders who are proficient in the space. If we take out the highs of May or have a closer correlation between buyers and sellers we can assume that the NFT market space is on its way to being bullish.
Source: Dune Analytics
4) Let’s Not Ignore Solana NFTs
OpenSea remains the dominant marketplace. This is certainly true when it comes to the USD volume and the money it attracts. Even in these bearish times, the top 5 Solana NFT marketplaces collectively manage just over $7 million daily. This is approximately 3 times smaller than the USD volume that OpenSea is currently attracting. However, it is a different story when we look at the users.
Yes, it is in the ballpark of around 30k users which is similar to OpenSea. However, with the active user count almost as high, this signifies more transactions per user. With this in mind, Solana’s main NFT marketplace, Magic Eden, is considerably more active than OpenSea. Something definitely to keep an eye on once the NFT bull market returns!