NFT Sales Decrease in July, What's the Cause?

Bittime - In July 2024, sales of Non-Fungible Tokens (NFT) decreased by 2% compared to the previous month. Based on data from CryptoSlam, total NFT sales in July reached approximately $430 million, down from $439 million in June.  

Ethereum Dominates the NFT Market

Ethereum remains the blockchain network with the largest market share in NFT sales. Of July's total sales, Ethereum accounted for about 33.07%, or about $142 million. 

This dominance of Ethereum is not surprising, considering that the Ethereum ecosystem has long been home to various NFT projects, such as CryptoPunks, Bored Ape Yacht Club, and many more.

Ethereum, as the first blockchain network to introduce the ERC-721 token standard that enables NFTs, continues to be the top choice for digital artists, collectors and NFT investors. 

Even though transaction fees on the Ethereum network are quite high, reliability and a broad ecosystem make Ethereum still the first choice.

Solana, Ethereum’s Competitor in NFTs

Meanwhile, Solana, which is increasingly attracting the attention of NFT industry players, is in second place with a contribution of 22.69%, or around $97.65 million. 

Solana has attracted the attention of many new NFT projects thanks to its high transaction speed and much lower fees compared to Ethereum.

Solana's popularity among the NFT community continues to grow, mainly due to its aggressive development and support from large projects. 

Several NFT collections launched on Solana have managed to attract huge interest from the crypto community, and this has contributed to Solana's increasing market share in the NFT ecosystem.

Bitcoin Begins to Enter the NFT Market

Even though Bitcoin is known as the most popular crypto asset, its role in the NFT ecosystem is still relatively new. In July, Bitcoin recorded NFT sales of $77.31 million, ranking third in terms of NFT sales. 

Bitcoin's presence in the NFT market began to be seen since the introduction of Ordinals technology, which allows the issuance and trading of NFTs on the Bitcoin network. With this technology, Bitcoin is starting to solidify its position as an important player in the NFT market. 

Although not yet as big as Ethereum or Solana, the presence of Bitcoin as a platform for NFTs could be a game-changer, especially for collectors who want the security and liquidity advantages of the Bitcoin network.

Polygon and Immutable: A Promising NFT Alternative

Apart from Ethereum, Solana, and Bitcoin, other blockchains such as Polygon and Immutable are also showing quite good performance in NFT sales. Polygon posted sales of $33.92 million, while Immutable posted $21.03 million in July.

Polygon has long been known as a Layer 2 solution for Ethereum, offering cheaper and faster transactions. This makes Polygon a popular alternative for NFT projects looking to take advantage of the Ethereum ecosystem without having to deal with high gas fees. 

Meanwhile, ImmutableX, a project which focuses on NFTs and gaming, also continues to show steady growth thanks to its collaboration with several major blockchain games.

Factors Causing the Decline in NFT Sales

The 2% decline in NFT sales in July could be influenced by several factors. First, the volatility of the crypto market in general could be one of the causes. Unstable crypto prices often make investors cautious in transactions, including purchasing NFTs.

Second, there is also the influence of increasing competition in the NFT market. With many blockchains now supporting NFTs, the choices are increasingly diverse, and this can lead to market fragmentation. This means, even though total sales are decreasing, activity on some platforms may be increasing.

Last, the NFT hype phenomenon may be starting to die down. After its peak in 2021 and 2022, when NFTs became a global trend, the market may now be entering a more stable and mature phase, where only projects with truly proven value will survive.

Potency of NFT Marketplace

Although NFT sales saw a slight dip in July, the long-term outlook for the NFT market remains positive. Technological innovation and adoption of NFTs in various sectors such as art, music, games, and even digital real estate show that NFTs still have great potential.

With various new blockchains entering the market and the continued development of the technology, NFTs will continue to be an integral part of the digital world. Market players, be they investors, developers, or collectors, must continue to monitor the latest technological trends and adaptations to remain relevant and successful in this dynamic market.

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

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