The Wall Street Journal Says ‘The NFT Market Is Crashing,’ But Data Says It’s Not

A WSJ article claims that sales of non-fungible tokens (NFTs) are “flattening out” — the top five collectibles alone surpassed $1 billion in primary and secondary sales in the same week Dollar.

The article cites data from market analysis platform NFT Nonfungible, which shows that the number of NFT sales has dropped by 92% since its all-time high in September 2021. 2021.

“The NFT market is collapsing,” the article concluded.

However, on-chain data from the Dune Analytics dashboard suggests that the NFT market remains strong, with information showing that NFT users and transaction volumes are much higher than what Nonfungible reports.

The analysis also showed that the daily dollar volume of Ethereum NFTs on weekdays was one of the highest levels since February, with nearly $550 million in volume on the popular OpenSea marketplace on Sunday alone.

Analysis by Tom Schmidt, a partner at venture capital firm Dragonfly Capital, shows a similar picture when looking at OpenSea deals and dollar volumes.

Come on guys pic.twitter.com/CTJFldAHNk

— Tom Schmidt (@tomhschmidt) May 3, 2022

Sub-sectors within the NFT market are emerging, and while some areas of the oversaturated market have declined, others have seen huge gains.

Nansen’s analytics platform categorizes NFT collectibles by type, showing that “blue-chip” NFTs — established and highly regarded brands such as Bored and Mutant Ape Yacht Club and Azuki tokens — far outperformed art tokens or games.

The Nansen Blue Chip-10 Index, which tracks the top 10 NFT projects, is up 81% year-to-date (YTD), while the indices tracking the top 10 NFT art and game collections are down 39% and 49% year-to-date, respectively.

This phenomenon of NFT market capital consolidating into top collectibles was pointed to by an analysis by NFTstatistics.eth, which shared a chart in late April showing the top five collectibles are driving the NFT Ethereum market.

This trend continues: BAYC, Azuki, CloneX, Doodles and now Moonbirds separate themselves from the rest.

I’ve talked about the performance of large-cap stocks, but it’s really the top 5 items that generate all the gains. pic.twitter.com/UsUlwHMJ9M

— NFTstatistics.eth (@punk9059) April 26, 2022

NFT market analyst NFTstatistics.eth told Cointelegraph: “There is clearly a trend right now where the five or six most successful projects outperform while the rest are flat or declining.”

Nonfungible’s data shows that Sunday’s sales and active wallets reached numbers not seen in their data since November 8, 2021, which matches Yuga Labs’ record for land sales in the Otherside metaverse (and Ethereum’s record) directly related again contradicts the claim that NFT sales are “flattening out.”

It’s unclear why the non-fungible data the Journal relies on is inconsistent with Dune’s. However, this may be due to the inclusion of Nonfungible’s play-and-earn (P2E) game Axie Infinity.

According to CryptoSlam, the transaction volume of the popular P2E game reached an all-time high of over $40 million on November 4, 2021, before gradually declining to its current level of around $500,000.

But, as NFTstatistics.eth put it, the collapse of P2E gaming popularity “is a very different message from ‘NFTs are collapsing'”.

@DJohnson_CPA Shows that AxieInfinity was so big that it dominated in November and has since collapsed. It seems possible.

From my point of view, this is a very different message from “NFTs are collapsing” https://t.co/lq66GbhbAj

— NFTstatistics.eth (@punk9059) May 3, 2022

While the current debate focuses on Ethereum NFTs, Solana is quickly becoming a popular blockchain for such assets and is the second-largest blockchain in NFT sales after Ethereum.

Last week, the Solana NFT “Ok Bears” project topped OpenSea’s 24-hour sales tracker for the first time, and was fourth in CryptoSlam’s 7-day sales, behind Mutant Ape Yacht Club, with over $47 million in transactions.

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