Q3 2023 was the worst quarter for NFT sales in 3 years: report

In Q3 2023, sales of non-reversible token (NFT) were the worst the market has seen in three years.

According to Binance Research, the NFT sector recorded sales of $299 million in Q3, due to the drop in the price of Ether (ETH) and the floor prices of most collections.

The worst quarter for sales in three years

Binance researchers said September was the worst month on record for NFT sales declines since January 2021. Major collections such as Azuki, Bored Up Yacht Club and Mutant Up Yacht Club saw floor prices drop more than 25% quarter-over-quarter, he said. . NFT collections related to gaming and meta contras have declined over 40% in the last quarter.

The average sale price in September was $38.17, down from the August 2021 high of $791.84. The average number of daily unique NFT buyers fell 14% quarter-over-quarter to about 53,000. Analysts attributed this to challenging market conditions and low liquidity.

Although NFT sales volume decreased in Q3, Ethereum and Layer-2 scaling solution have increased market share. Ethereum rose 6%, while Ethereum rose 4%. The latter hosts popular blockchain games such as Gods Unchained, and topped the charts for sales volume in Q3.

Gaming NFTs have increased in popularity, with the top five sets by transaction volume being Gods Unchained, Axie Infinity, NBA Top Shot, NFL All Day and Mythical Beings.

Analysts note that Q3 saw overall growth amid the decline in sales, likely due to lower fees and moderate ETH prices.

Crypto market cap decreased in Q3

From a broader perspective, overall crypto market capitalization fell 8.6% in Q3, despite rallies following the legal victories of Ripple Labs and asset management firm Greyscale.

Crypto fundraising activity slowed further in Q3, recording the lowest amount raised since Q4 2020, with fundraising and fundraising down 24.9% and 21.4%, respectively.

On the bright side, Bitcoin (BTC) surged 63.1% amid a flurry of positioning from major traditional financial players. Other assets such as Ripple (XRP) and Solana (SOL) have also recorded significant gains. Institutional adoption continued as high-traditional companies dipped their toes into the water.