Despite experiencing a significant decline in the NFT market starting from June of the previous year, recent findings from Nansen Research shed light on an encouraging turnaround. In the face of critics pronouncing the demise of NFTs and distancing themselves from the term, the profitability of freshly minted Ethereum NFTs reveals a contrasting narrative. As per Nansen's comprehensive report, an impressive 67% of these NFTs are generating profits by surpassing their initial launch prices, presenting an optimistic outlook for both NFT collectors and curators alike.
However, alongside the positive news, the data also unveils a downward trajectory in the creation of new NFTs since the summer, which could have influenced the overall profitability rates. Nansen Research took to Twitter to share this insight, highlighting a significant 65% decrease in NFT mints from April to May, marking the lowest point since June of the previous year. A comprehensive graph accompanying the data showcases that NFT profits tend to peak during the initial days of minting and gradually taper off as time progresses.
This recent data from Nansen Research offers a glimmer of hope for the NFT market, challenging the notion of its demise and emphasizing the potential for profitability despite the challenges faced. With this positive shift, the future of NFTs remains an intriguing subject of discussion within the digital asset community.
Despite a recent decrease in the creation of new NFTs, non-fungible tokens on the Ethereum blockchain continue to thrive in terms of trading volume, with an impressive $139 million in transaction volume recorded last month, according to data from Dune Analytics. Interestingly, the data also indicates a significant recovery in the NFT market since the beginning of this year, surpassing the decline experienced in the latter half of 2022.
The peak of the NFT market was observed in the first quarter of 2022, driven by the emergence of platforms like X2Y2 and LooksRare. However, it is worth noting that a substantial portion of the trading volume during this period can be attributed to wash trading, a practice where a trader simultaneously buys and sells the same asset to create artificial market activity. To delve deeper into this topic, I recommend reading "The Highs and Lows of a Tumultuous Year."
Another noteworthy surge in the NFT landscape occurred in February 2023 with the introduction of the Ordinals protocol, also known as Bitcoin NFTs. This event sparked renewed interest among collectors and investors who were eager to engage in buying, selling, and trading NFTs on the Bitcoin network for the first time.
Despite the ups and downs that the NFT market has experienced over the years, the recent findings from Nansen Research suggest that there is still potential for profitability. As the number of new NFT creations declines, the market may enter a phase of recalibration and consolidation. This resilience and adaptability of the industry in the face of challenges highlight the enduring value of NFTs.
0 replies on “Freshly Minted Ethereum NFTs Triumph Over the Bear Market”