NFTs
Pranksy’s Optimism vs. Market Realities
Pranksy’s optimism in the future of NFTs
Well-regarded non-fungible token (NFT) collector Pranksy has expressed optimism about the fate of NFTs, countering a developing narrative on their decline. Pranksy, an early NFT investor who has built a large following and collections, recently asked his X followers about the last time they purchased an NFT. The post received nearly 118K views and over 500 replies, prompting Pranksy to claim that the NFT space is still alive and breathing. “500 genuine responses, there’s still life in the old one,” he wrote, hinting that the future of NFTs is still alive.
NFT trade data paints a different picture
Pranksy’s optimism contrasts with CryptoSlam data, which paints a more complex picture of the future of NFTs. In May, international NFT revenue totaled four million, marking the lowest monthly performance compared to October of the previous year. It was also the first month in 2024 to see revenues below the $1 billion mark. one billion mark.
Ethereum (NASDAQ:ETH), the leading blockchain for NFT sales with a historical volume of over $43 billion, experienced a decline in sales, recording $164 million in sales, the lowest since September. Notably, the number of Ethereum unique buyers also dropped significantly, with just 56,914 unique buyers in May, the lowest count since June 2021.
The drop in NFT sales was not exclusive to Ethereum; even the Bitcoin (NASDAQ:BTC) network suffered a decline. Bitcoin recorded zero million in monthly sales, the lowest discernment since October. Both consumer and supplier predict that the Bitcoin community has reached its lowest levels this year. However, amid falling sales of major blockchains, Solana (NASDAQ:SOL) appeared to defy the trend in terms of activity.
Solana recorded $93 million in monthly sales, marking the first time it fell below the $100 million mark since November of the previous year. Solana also presented new monthly data for real consumers and sellers, with 346,229 and 594,555 addresses respectively. Despite Solana’s active user base, the average NFT price on the network is declining, with the average monthly sales value standing at $37.8, the lowest value recorded this year.
NFT Low Prices Drop Despite Crypto Bullish Trends
While the broader cryptocurrency market has trended higher in 2024, with several major tokens seeing fee hikes, NFT land fees have no longer followed suit. The top 5 NFT collections saw significant drops in their floor prices:
- Bored Ape Yacht Club (BAYC): Once the crown jewel of the NFT space, BAYC’s land load has plummeted from an all-time high of 153 ETH to around 8.99 ETH.
- CryptoPunks: The iconic series saw its land load drop from one hundred and twenty-five ETH at the top to twenty-five ETH.
- Chubby penguins: This collection of 8,888 penguin avatar NFTs on the Ethereum blockchain also saw its minimum price drop from 22.9 ETH to 8.99 ETH.
- Azuki: This once highly sought-after anime-themed collection has seen its minimum price drop from 31.8 ETH to 3.09 ETH.
- CloneX: Launched with the help of RTFKT, CloneX’s land fee has been reduced from 19.5 ETH to 0.36 ETH.
These declines propose a stark retreat from the height of the NFT boom, even as the broader crypto market enjoys renewed investor confidence.
Companies abandon NFT assets
There has been a trend of companies discontinuing their involvement in the NFT space. In March, Starbucks (NASDAQ:SBUX), a renowned multinational coffee chain, ended its NFT rewards program. In January, gaming retailer GameStop (NYSE) announced the closure of its NFT marketplace after scaling back its crypto services over the past two years. More recently, X, under the ownership of Elon Musk, discontinued a feature that allowed top-tier users to use NFT images as profile photos.
Despite declining interest in the NFT space, there has been some positive news. Last month, renowned Portuguese footballer Cristiano Ronaldo revealed his collaboration with Binance to launch his fourth NFT collection. The collection, launched on May 29 on the Binance NFT Marketplace, pays homage to Ronaldo’s illustrious career by showcasing highlights from his football journey.
However, it is important to note that Ronaldo has been involved in legal issues related to his involvement in NFT collection sales with Binance. In November 2023, Ronaldo faced a class motion lawsuit in a United States District Court in Florida. The plaintiffs alleged that Ronaldo actively participated in the offering and sale of unregistered securities in collaboration with Binance, arguing that he should have been aware of Binance’s involvement in such activities.
Conclusion
In short, while Pranksy’s optimism about the future of NFTs is notable given his status and experience, CryptoSlam’s data tells a more nuanced story. The average decline in purchase and sale volumes and the drop in the costs of top-tier collections highlight the demanding situations facing the market in 2024. Despite some positive developments, the future of NFTs continues to navigate a complex and volatile landscape.
Featured image: Freepik © Freepik