A Month of Imbalance in the NFT Market
Recent data from analytics platform NFTGo has revealed a consistent trend of more sellers than buyers in the NFT market throughout April. This imbalance might be concerning for those looking to sell their NFTs soon, as it could indicate a lack of demand in the market.
Notable Data Points
On April 5, the number of sellers reached 36,423, dwarfing the number of buyers at 18,495. The last recorded day when buyers exceeded sellers was on March 11, with 9,756 buyers compared to 9,754 sellers. The turbulent market conditions have led to varying reactions within the NFT community.
Silicon Valley Bank Collapse and Its Impact on NFT Trading
The NFT market experienced a decline on March 12 after the collapse of Silicon Valley Bank (SVB), which caused fear among traders. Trading volumes fell from around $68-$74 million on March 10 to just $36 million on March 12. This event also saw a 27.9% drop in daily NFT sales count between March 9 and March 11.
Wash Trading on the Rise
CoinGecko’s March 20 report indicates that the top six NFT marketplaces experienced a rise in wash trading for the fourth consecutive month in February, with a total volume of $580 million. This marks a 126% increase from January’s volume of $250 million. The report attributes the overall recovery of the NFT marketplace as the reason behind this surge in wash trading.
The Future of NFT Trading
With the NFT market experiencing an imbalance of more sellers than buyers throughout April, it remains to be seen whether this trend will continue in the coming months. The market’s recovery, coupled with the rise in wash trading, could potentially exacerbate the situation. However, as with any market, the future of NFT trading is uncertain, and only time will tell if this imbalance persists.