NFT decline in Q3 but on-chain metrics remain bullish

Latest Q3 NFT report from DappRadar (where I work as PR Manager). As NFT News Jerry Christopher nicely titled his coverage:DappRadar’s NFT report predicts a surge in sales by 6% despite the financials slumping in Q3

Though my fav article was Analyzing DappRadar’s Q3 NFT Report by Jon Torrey which highlights that: “The report is chock-full of useful data and upon deeper analysis (explained below) there are some positive trends forming.” And in particular for highlighting the report finding that “the number of unique NFT traders increased by 36% from Q3 of last year”.

The early hypothesis about NFTs was that the “masses” would enter and while prices per transaction would drop, demand would soar when that happened.

Trading NFTs still requires some technical know-how from buying cryptocurrency to setting up and funding a wallet while avoiding scams and hasn’t yet hit a critical scale, but 2.2 million traders (a slight drop from Q2) is still strong.

Regardless of other factors, people actually being interested in trading NFTs over the long-run matters the most. It’s telling that after 75% crashes, there are still millions of people trading NFTs, albeit with fewer dollars / ETH circulating.
NFT Report September DappRadar

Key Takeaways
  • Although the NFT market’s trading volume decreased by 75% ($2B) from the prior quarter, sales are estimated to grow by 6%(21.1M) by the end of Q3.
  • In Q3 the top market cap for Ethereum’s Top 100 NFT projects had a 44% ($19B) decrease in USD from the previous quarter; over the same period, the market cap in terms of ETH decreased only 27% (12.21 M).
  • The number of unique traders count has increased by 36%, compared to Q3 2021.
  • In Q3, Ethereum accounted for 91% ($1.4B) of the total NFT trading volume, but only 26.2% for the sales count.
  • ImmutableX defies the market fall down increasing its trading volume by 87% from the previous quarter.
  • As of September, Yuga Labs assets represent over 46.21% of the whole NFT market cap.
  • Azuki collection floor price has a month-to-month increase of 43.18%, reaching 11.4 ETH
  • CryptoPunks is the collection with the highest holding period, 239 days.