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The rise in low-cost NFTs trading volume is an attempt to revive the industry, but prices, sales and volumes are still at two-year lows in July.
Accessibility has replaced exclusivity in the NFT market, as $15 portraits of Spider-Man creator and cameo king Stan Lee in the Marvel film universe, cutesy doodle avatars and pixelated punk are out of the industry spotlight.
Not only are people paying less for art owned through non-fungible tokens (NFTs), but they are also buying far less. As DappRadar reports, there were only 3.7 million transactions in July, down 60% from a year ago.
Bitwise research analyst Juan Leon says that “people are running out of energy” and are tired of the same expensive profile pictures. “They are waiting for a new paradigm to emerge.”
Trading volume fell to $632 million in July, a two-year low, due to a shift in interest in easy-on-the-wallet NFTs, DappRadar reports. The decline was 23% from June and $33% from July 2022.
“People are distancing themselves from profile-picture collectibles” and becoming more selective about their collectibles, says Sarah Gherghellas, blockchain analyst at Dapp Radar and author of the report.
Even though the cryptocurrency market has recovered from its dreadful 2022, the year remains disappointing for NFTs. The most expensive NFT sold this year, a piece of generic art called “The Goose,” previously owned by bankrupt crypto firm Three Arrows Capital and sold by Sotheby’s in June, sold for just $6.2 million. In contrast, sales at the previous year’s highest price were $53.7 million.
The NFT price level, the minimum amount for which a piece in the collection is sold, has also suffered. Most blue-chip collections, including Bored Ape Yacht Club, Azukis, Doodles, Mebits and Clone X, have all seen their minimum prices slashed by more than 50%. Doodles fared the worst, down 84%.
According to NFT price floor, Cryptopunks, the largest NFT archive by market capitalization ($880 million), has seen its lowest price drop 62% over the past year to 29.93 ETH ETH, roughly $55,200. Cryptopunks have been among the most expensive NFT collectibles, with various types of pixelated heads accounting for four of the top 10 best-selling collectibles of 2022, selling for individual prices of $1.5 million to $23.6 million. Leone attributes the dominance of the top-performer to the adoption of low-definition archiving by “crypto-natives”, which led to their success in that area.
The collection of four different types of Stan Lee-themed NFTs sold out in minutes in late July, according to Cartoon Studios, the makers of the collection. Each collectible item cost $15, meaning the company made approximately $125,000 from the sale of 8,294 items. In comparison, the most expensive NFT sale of July was a single golden bore monkey that sold in early July for $1.1 million.
Another NFT collaboration, launched in June between musician Jay Chou and soccer club Paris Saint-Germain, is currently available for $18.
In fact, according to DappRadar, NFTs on the Polygon MATIC blockchain, which is known for low prices due to low-fee, domineering sales, accounted for 27% of all transactions made in July. Polygon is often used for large NFT projects, and is popular with mainstream brands such as Starbucks SBUX, Reddit, and Adidas for launching their digital collections.
“While we have seen early adopters of NFTs over the past few years, we are now seeing an increase in the retail crowd who want fewer, more accessible entry points to the market,” says Leone.
It seems the market decline has extended beyond NFTs as well, as ApeCoin APE, the crypto token named after the Bored Ape Yacht Club, hit an all-time low of $1.77 on Wednesday morning, according to CoinGecko. The price has come back to $1.81.
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Source: cryptosaurus.tech
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