NFT Traders Show Resilience Despite Falling Transaction Volume

The number of NFT transactions fell by just 11% in June compared to May data despite a 72% decline in sales volume.
Image source: Wikimedia

Quick take:

  • NFT transactions last month fell by 11% to about 5.5 million down from 6.2 million in May. 
  • The NFT sales volume for the month plummeted 72% from the previous month, falling below $1 billion for the first time since June 2021.
  • Leading NFT collections like the BAYC experienced a significant decline in the floor price amid the crypto winter.

The biggest headline is that NFT sales fell by 72% between May and June 2022. That decline pushed the NFT transaction volume below $1 billion for the first time since June last year.

According to data compiled by NFT aggregator platform CryptoSlam, the industry registered $849 million in NFT transaction volume in June 2022, down from $3,066 million recorded in the previous month.

Source: CryptoSlam

Yet, the market seems to be still attracting high levels of trading activity despite the falling sales volume. The same data analytics platform shows that NFT transactions declined by a relatively lower figure of just 11% between May (6.2 million) and June (5.5 million). 

Thus given the variables involved in the sales volume data (transactions and average NFT prices), it seems that declining NFT floor prices had a lot to do with the collapse than a general boycott of the industry.

And there is data to back up this argument too, just looking at some of the top NFT collections owned by Yuga Labs.

Source: @sealaunch Dune Analytics

According to a dashboard prepared by @sealaunch on Dune Analytics, the Bored Ape Yacht Club NFT collection floor price plummeted from about $400,000 (152 ETH) in May to a low of about $86,267 (70 ETH) in June, reflecting a 78% decline.

Again, the level of decline here is a bit skewed because it also reflects the falling ETH price, which lost more than 60% in value from its May high of about $2,950 to its June low of about $990. 

The number of unique NFT sellers fell by 41% to 967k down from 1.653 million while the number of unique buyers was down 18.7%, after declining to 567k from 698k.

Again, this suggests that NFT enthusiasts remained relatively positive amid the crypto winter. Or you could flip the data and say people were not willing to sell their NFTs at low prices.

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