Nfts
Pranksy’s optimism in the face of market realities
Pranksy’s optimism about the future of NFTs
Pranksy, a noted non-fungible token (NFT) collector, has expressed optimism about the fate of NFTs, countering a developing narrative about their decline. Pranksy, an early NFT investor who has built a large following and collection, recently surveyed his X followers about the last time they purchased an NFT. The post received nearly 118,000 views and over 500 replies, prompting Pranksy to declare that the NFT space is still alive and breathing. “500 authentic responses, there’s still life in the old girl,” he wrote, hinting that the future of NFTs is still alive.
NFT trading data paints a different picture
Pranksy’s optimism contrasts with data from CryptoSlam, which paints a more complex picture of the future of NFTs. In May, international NFT revenues totaled 4 million, marking the lowest overall monthly performance since October of the previous year. It also became the first month of 2024 to see revenues below the $1 billion mark. billion.
Ethereum (NASDAQ:ETH), the leading blockchain in NFT sales with a historic volume of over $43 billion, saw a decline in sales, recording $164 million in sales, the lowest since September. Notably, the number of unique buyers of Ethereum has also declined significantly, with only 56,914 unique buyers in May, the lowest number since June 2021.
The decline in NFT sales was not exclusive to Ethereum; even the Bitcoin (NASDAQ:BTC) network has seen a decline. Bitcoin recorded zero million monthly sales, the lowest figure since October. Consumers and providers expect the Bitcoin network to hit its lowest points this year. However, amid declining 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 $100 million since November of the previous year. Solana also produced new data for specific monthly 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 seeing a decline, with the average monthly sales value standing at $37.8, the lowest figure recorded this year.
NFT Price Floors Drop Despite Crypto Bullish Trends
While the broader cryptocurrency market has shown bullish trends in 2024, with many major tokens experiencing fee hikes, NFT ground fees no longer accompany this pursuit. The top 5 NFT collections have seen significant drops in their floor prices:
- Bored Ape Yacht Club (BAYC): Once the crown jewel of the NFT space, BAYC’s ground charge has fallen from an all-time high of 153 ETH to around 8.99 ETH.
- CryptoPunks: The iconic series saw its floor charge increase from one hundred and twenty-five ETH to its peak at twenty-five ETH.
- Chubby penguins: This collection of 8,888 penguin avatar NFTs on the Ethereum blockchain also saw its floor price drop from 22.9 ETH to 8.99 ETH.
- Azuki: This once highly sought-after anime-themed collection saw its floor price drop from 31.8 ETH to 3.09 ETH.
- ClonerX: Launched using RTFKT, CloneX’s ground rate dropped from 19.5 ETH to 0.36 ETH.
These declines suggest a full retracement from the highs of the NFT boom, even as the broader crypto market enjoys renewed investor confidence.
Businesses Abandoning NFT Features
There has been a trend of companies ending their involvement in the NFT space. In March, Starbucks (NASDAQ:SBUX), the popular 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, owned by Elon Musk, dropped a feature that allowed high-end users to use NFT images as profile photos.
Despite the decline in interest in the NFT space, there has been some positive news. Last month, famous Portuguese footballer Cristiano Ronaldo revealed his collaboration with Binance for the launch of his fourth NFT collection. The collection, unveiled on May 29 on the Binance NFT marketplace, pays homage to Ronaldo’s illustrious career, showcasing highlights from his footballing journey.
However, it is worth noting that Ronaldo has been embroiled 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 conjunction with Binance, arguing that he should have been aware of Binance’s involvement in such activities.
Conclusion
In summary, while Pranksy’s optimism about the future of NFTs is remarkable given his status and experience, CryptoSlam’s data tells a more nuanced story. The average decline in buying and selling volumes and the drop in ground costs of flagship collections highlight the demanding situations that the market will experience in 2024. Despite some positive developments, the future of NFTs continues to navigate a landscape complex and volatile.
Featured image: Freepik © Freepik