Prominent non-fungible token (NFT) collector Pranksy remains optimistic about the future of NFTs, countering the prevailing sentiment of their decline. Pranksy, an early investor in NFTs with a significant following and collection, recently engaged his X followers by asking about their most recent NFT purchases. The post garnered nearly 118,000 views and over 500 replies, prompting Pranksy to declare, “500 genuine replies, there is life in the old girl yet,” indicating ongoing activity in the NFT space.
Contrasting Views: Pranksy’s Optimism vs. Market Data
While Pranksy sees vitality in the NFT market, data from CryptoSlam presents a more complex picture. In May, global NFT sales totaled $604 million, marking the lowest monthly performance since October of the previous year and the first month in 2024 with sales below $1 billion. Ethereum, the leading blockchain for NFT sales with a historical volume exceeding $43 billion, recorded $164 million in sales, the lowest since September. Additionally, Ethereum’s number of unique buyers dropped significantly to 56,914, the lowest since June 2021.
Broader Market Trends
The decline in NFT
Are NFTs Dead? Mega Collector Pranksy Says Not Yet
Prominent non-fungible token (NFT) collector Pranksy remains optimistic about the future of NFTs, despite a growing narrative suggesting their decline. Pranksy, an early investor in NFTs with a significant following and collection, recently engaged his followers on X by asking about their most recent NFT purchases. The post garnered nearly 118,000 views and over 500 replies, prompting Pranksy to declare, “500 genuine replies, there is life in the old girl yet,” indicating ongoing activity in the NFT space.
Contrasting Views: Pranksy’s Optimism vs. Market Data
While Pranksy sees vitality in the NFT market, data from CryptoSlam presents a more complex picture. In May, global NFT sales totaled $604 million, marking the lowest monthly performance since October of the previous year and the first month in 2024 with sales below $1 billion. Ethereum, the leading blockchain for NFT sales with a historical volume exceeding $43 billion, recorded $164 million in sales, the lowest since September. Additionally, Ethereum’s number of unique buyers dropped significantly to 56,914, the lowest since June 2021.
Broader Market Trends
The decline in NFT sales was not confined to Ethereum; the Bitcoin network also saw a downturn, with $160 million in monthly sales, the lowest since October. Both the buyer and seller counts on Bitcoin hit their lowest points of the year. However, Solana bucked the trend in terms of activity, recording $93 million in monthly sales, although it fell below the $100 million mark for the first time since November of the previous year. Solana also set new records for monthly unique buyers and sellers, with 346,229 and 594,555 addresses respectively. Despite this activity, the average NFT price on Solana dropped to $37.8, the lowest this year.
Falling NFT Floor Prices
Despite bullish trends in the broader cryptocurrency market in 2024, NFT floor prices have not followed suit. The top five major NFT collections have seen significant declines:
- Bored Ape Yacht Club (BAYC): Floor price dropped from an all-time high of 153 ETH to around 8.99 ETH.
- CryptoPunks: Floor price decreased from 125 ETH at its peak to 25 ETH.
- Pudgy Penguins: Floor price fell from 22.9 ETH to 8.99 ETH.
- Azuki: Floor price dipped from 31.8 ETH to 3.09 ETH.
- CloneX: Floor price declined from 19.5 ETH to 0.36 ETH.
These drops suggest a significant retracement from the heights of the NFT boom, even as the broader crypto market enjoys renewed investor confidence.
Companies Retreating from NFTs
Several companies have recently scaled back their involvement in the NFT space. In March, Starbucks terminated its NFT rewards program. In January, GameStop announced the closure of its NFT marketplace. More recently, X, under Elon Musk’s ownership, discontinued a feature allowing premium users to use NFT images as profile pictures.
Some Positive Developments
Despite the declining interest, there have been positive developments. Last month, Portuguese footballer Cristiano Ronaldo collaborated with Binance to launch his fourth NFT collection. The collection, unveiled on May 29 on the Binance NFT Marketplace, celebrates Ronaldo’s football career. However, Ronaldo faces legal issues related to his involvement in NFT collection sales with Binance. In November 2023, he faced a class-action lawsuit in a Florida district court, alleging he participated in the sale of unregistered securities with Binance.
Conclusion
While Pranksy’s optimism about the future of NFTs is notable, the data from CryptoSlam paints a more nuanced picture. The overall decline in trading volumes and falling floor prices of top collections highlight the challenges facing the market in 2024.
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