The market for non-fungible tokens, or NFTs, has slowed from its peak, but that doesn’t mean the sector is dead, far from it.
NFT sales volumes hit a healthy $3.7 billion in May, according to DappRadar’s latest industry report, which was released on Wednesday. Although volumes are down 20% compared to April, industry activity remains robust considering crypto assets as a whole are in a bear market.
DappRadar also highlighted the fact that market volumes have not dropped that much when measured in its native tokens, such as Ether (ETH). An example: OpenSea, the largest NFT marketplace, generated 950,000 ETH in trading volume last month, which was down just 6.5% compared to April. When measured in US dollars, OpenSea’s monthly volumes decreased by 25%.
In the meantime, Solana NFTs posted their best month of trading, generating $335 million in volume across all markets, an increase of 13% compared to April.
DappRadar’s report cited NFT collections such as Solana’s Moonbirds and Okay Bears as the biggest catalysts for the sector’s strong performance in May. For its part, the “free-to-mint” NFT collection Goblintown has generated $31 million in sales since its launch on May 22. The great demand caused the minimum price of the project to go from zero to 6 ETH, at the close of this edition.
However, the news was not entirely positive, as so-called “blue-chip” collections, such as the Bored Ape Yacht Club (BAYC), saw their value drop dramatically as buyers shifted to the newly promoted collections. The BAYC price floor decreased by 38% in May, going from 150 ETH to 93 ETHaccording to DappRadar.
Although NFTs are not immune to cryptocurrency market volatility, the industry appears to be carving out a strong niche—and gaining mainstream adoption in the process.. According to a recent report from cryptocurrency data aggregator CoinGecko, the NFT market is forecast to move more than $800 billion in the next two years.
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