NFT Sales are about to break last year’s record but there’s more to it

NFT sales are on track to outpace last year’s total very soon, but the market’s monthly declines since 2022 are concerning. According to a report from blockchain firm Chainalysis, total sales attained $37 billion in the first week of May, in comparison to $40 billion for the entire year of 2021.

If NFT sales follow the same path and maintain their median weekly since January, we can expect total sales to double to $90 billion by the end of this year.

Despite the growing trend, total sales have declined each month since the beginning of the year. From January to April, the value of most NFTs fell by an average of 19.8% per month.

As the Federal Reserve tightens its monetary policy, investor appetite for risk assets like cryptocurrencies is dwindling.

Ethan McMahon, the Chainalysis economist said :

“The market is not at all-time highs, but we are seeing strong transaction volume as well as an uptick in the number of active collections and buyers [active wallets] who are interacting with NFT marketplaces,”

Social NFTs sales continue to remain stable

While most NFTs are witnessing a downfall trend, Social NFTs have maintained a good recovery since March. Furthermore, OpenSea set a new daily trading volume record between April 30th and May 1st. The primary reason for this increase was the virtual land sale of Otherdeed NFTs.

Similarly, despite waning hype around digital assets, NFT investment is on track to surpass last year’s total. Already, collectors have invested nearly $37 billion in NFT marketplaces in 2022, compared to $40 billion in 2021.