New Minted Ethereum NFT Profitable by 67%

According to the tweet from Nansen, only 67% of new NFTs minted last month are profitable. But, this is not what they mean, as any new NFT minted percentage is always profitable in the first month, then it declines after a few months. In reality, the new NFT mints have been on the decline since summer. NFTs minted in May are 65% lower than that in April, and it is the lowest since June 2021.

Decline in Sales and Active Traders of NFT

The downtrend of the NFT market shows people are lacking interest in the field. Not only are the sales dipping but also there is a decline in the active traders. As per the data from Dune Analytics, the markets like OpenSea have shown a drop in active traders. In January, it was 359.2K, and the number dropped down to 149.4K in May.

Last month, the NFT sales on Ethereum blockchain dropped more than 15%. The 30-day sales volume shows $416.8 Million sales. The number of buyers are 65.5K and sellers are 55.4K. However, both the numbers are declining. 

In terms of sales volume, Ethereum is the top blockchain. When compared to Bitcoin, Solana, and Polygon, they have a sales volume of $40 Million to $180 Million.

NFT Market Declining

Ethereum, comparatively, influences the market in terms of buyers and sellers, as evident from the OpenSea data. This influence is because its blockchain regulates the major NFT projects which run on ERC-721 tokens. It has a highly secure network which gives high exposure to a huge market. 

Its NFTs are sold at higher prices, but sometimes, the network traffic causes a major transaction backlog. The transaction fees are also high, making it expensive for users to mint NFTs. The most popular NFT collections in Ethereum are Cryptopunks and the Bored Ape Yacht Club (BAYC).

On the other hand, Solana which is still lacking behind, gives a cheaper platform and provides fast minting of non fungible tokens. The PoS reduces the technical glitch. The most common Solana NFT collections are Degenerate Ape Academy, although the high traffic leads to network issues which makes it inaccessible to users.

Precisely, NFTs market is declining since June 2021. Still the NFT profits tend to be higher in the first few days after the mints, before declining in the days after.

As it is associated with cryptocurrency, the decline of cryptocurrencies can be accounted as a reason for decline in investor interest, while over congestion and high gas fee accounts for some other reasons behind the decline in the market.

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