- Interest in NFT in Nigeria was at record high in Q3
- ENS was the most profitable NFT project
- The Merge impact was minimal on the market
This year 2022 has been bearish for most of it, with the prices of NFTa falling to record low despite the growing number of traditional and web2 businesses taking position in the industry. While the third quarter like has been eventful, the general sentiment has remained unchanged through the months. However there seem to be some interesting insights into the industry. Let’s find out.
Through the year 2022, the crypto market has fallen from $3 trillion to less than a trillion dollars. The NFT market was not exempted. For example, only 272 wallets in Q3 generated above $100,000 in profit as against 4,536 and 2,583 in Q1 and Q2 respectively.
Trade volumes & profits
First, in Q2, 2022, trade volumes in USD saw a 25% decline in comparison with Q1. And in Q3, the trade volumes fell by 75% showing lesser NFT-related transactions were initiated between July and September 2022.
The market also saw a decline in volume of sales by 5% – 11.45m in Q2 to 10.90m in Q3 – with Yuga labs dominance on the NFT market falling from over 30% in Q2 to 17% in Q3. Yuga Labs metaverse and PFP, Otherside & BAYC trading volume fell from $2b+ to $182m in Q3.
Resellers of NFTs saw a drop in profit “from $2 billion to Q2 $326 million” in the Q3 while total loss also declined from $1.4 billion to about $780 million in the same period.
Average NFT prices and holding time
NFT average price fell to $150 from $600 in Q2. Active wallets also stopped by 17% in Q3, resting around 120,000 daily transactions. The average holding time of NFTs went up also by 13%. This could be as a result of the bear market which resulted in falling prices and low exit liquidity.
Nigerian’s love for NFTs
Despite the clamp down on crypto-related activities in China, the Chinese displayed the highest interest in NFT globally according to Google Trend searches. Three other nations in the top five nations with the highest search for NFTs were Asian states too.
Nigeria, the only African country on the top ten, displayed a unique pattern, the Non-fungible team explained. While the government of Nigeria is not in support of cryptocurrencies and NFTs, it appears that this opposition fuels the interest of Nigerians in NFTs.
In general, searches around NFTs, which was highest in Q4 2021, fell to 2021 low at the end of Q3 2022.
Further findings revealed that while the Collectibles segment of the NFT market was the most profitable in Q3,
Ethereum Name Service (in the Utilities segment) had the highest profit ($26.1m) of all segments. Although, the much anticipated Ethereum Merge had no significant effect on the price of Ether and NFTs.
It appears that while so many dead NFT projects will not be seen again, “the era of NFTs where profit and speculation reigned supreme is probably over,” the Non-fungible team explained. The world is paying attention to NFTs as it’s seen as a unifier in markets where community development is important
The team also highlighted that the key NFT players have learnt a lot of lessons from this bear market and will do more as “NFTs are already part of our lives and the ecosystem is growing every day.” As a result, the next wave of NFT explosions will be stronger than the previous.
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