Digital Reading NFT Market: Total trading volume has dropped by 50% since April, Solana royalty income remains strong

Author: OurNetwork

Compiled by Deep Wave TechFlow

Since April 2024, NFT trading volume has dropped sharply by 50%

• Since April 2024, NFT Trading volume dropped from $300 million per week to less than $150 million, a drop of 50%. Over the past 30 days, daily trading volume has remained at around $15 million. As of July 24, Ethereum had the highest daily trading volume at $5.8 million, accounting for 45% of the market; Solana followed with $3.3 million (26%), while Polygon had 230 million (18%). Each chain is usually dominated by 1 or 2 platforms. Blur has accounted for 60% of the transaction volume on Ethereum over the past 30 days. On Polygon, OKX facilitates 91% of transactions, while on Solana, Magic Eden accounts for 55% of transaction volume and Tensor 41%. In the Bitcoin market, Magic Eden has over 90% trading volume.

nftpulse

• Rights fees are still going strong, with Solana in the lead. Over the past 30 days, platforms have paid a total of $4.8 million in royalties to creators, with Tensor accounting for 31% and Magic Eden accounting for 30%. Top collectibles by royalty include Mad Lads and Liberty Cats, each contributing roughly 10% of the total.

nftpulse

• ① Blur
  Evgeni Averkin

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Dashboard

Whale Game: Blur’s 40-70% trading volume dominance relies on 5-20% of traders, causing TVL to plummet by 38% due to incentives drying up

• As the leading NFT market, Blur is in It experienced a significant decline following incentives in Q3, which ended on June 26. Daily trading volume plummeted from $13.3 million (Blast) and $7.9 million (Ethereum) on June 24 to $755,000 and $3.1 million on June 26. The amount borrowed also dropped from $7 million to $3.2 million. While rewards were limited to Blast, the withdrawal of funds from one blockchain had a spillover effect on other blockchains within the same platform, highlighting the volatility of the incentive-based crypto ecosystem.

Dune Analytics - @zh3n

• Blur’s volume dominance belies its small trader base. Despite accounting for 40-70% of trading volume between May and July 2024, its proportion of independent traders has remained between 5-20%. This is in stark contrast to OpenSea (25-35% volume, 30-40% traders) and shows Blur's vulnerability to whale behavior, where volumes could drop sharply if the big players exit.

Dune Analytics - @zh3n

• The withdrawal of the Blur party also triggered a sharp drop in TVL, from a peak of 52000 ETH to 3200 0 ETH (-38 %), which affected market sentiment and thinned liquidity, causing the Blue Chip NFT Floor Price Index to fall by 38% from high to low. However, post-exit, the price stabilized (up 10% from the lows), suggesting a return to bullish organic trading is possible.

Dune Analytics - @zh3n

• Transaction Level Alpha: On June 17th, just before Blur Season 3 ends, cbb.eth launched from Blur A large withdrawal of 5550 ETH was executed in Pool, and at the time this transaction accounted for more than 10% of the protocol's TVL. The deal, the largest in 90 days, underscores Blur's reliance on whale behavior. This behavior can quickly alter bid-ask spreads, reduce liquidity depth, impact market stability and trader confidence, and lead to volatility in price and trading activity, as we saw in the months of June and July.

② OpenSea

Brandyn Hamilton|Website|Dashboard

OpenSea attracted more than 250,000 L2 users in the second quarter of 2024, surpassing Ethereum for the first time

• Both crypto enthusiasts and casual observers may have heard of OpenSea, the leading NFT market. However, the past few months have seen significant changes in user migration from the Ethereum Layer 1 (L1) to Layer 2 (L2) network. In the second quarter of 2024, L2 blockchains – Optimism, Arbitrum, and Base – accounted for 39% of total OpenSea sales, compared with only 8.9% in the first quarter. Among them, Base’s trading volume accounted for the vast majority of L2, reaching $88.3 million.

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• Looking at the top 5 NFT collectibles on the L1 and L2 networks, the transaction volume in the second quarter is mainly dominated by Base, the highest collection is Higher Swatches, trading volume was $27.7 million. However, L1 has the highest average sales price per NFT, with BoredApeYachtClub’s average sales price reaching $52,850.

Github BrandynHamilton

• On the L2 network, the number of users has also grown significantly. In the second quarter, Base surpassed Ethereum in user numbers, adding more than 100,000 users. What will be worth watching next is whether Base can maintain this growth rate, especially after the Onchain Summer 2.0 event launched in June. Although Base is newer than other L2 networks, it leads in both users and transaction volume.

Github BrandynHamilton

• Transaction Level Alpha: In Q2 2024, one of the top collections on Optimism is 3DNS, the first compliant On-chain domain name registrar for web2 and web3. 3DNS powered domains can be used not only to set up email and website records, but also to send and receive cryptocurrencies. The highest-selling domain to date is watch.box, sold via offer on May 6, 2024, for 23.59 ETH / $73,644. Considering the collection is less than a year old, these are some very early web3-enabled DNS domain sales, marking a true historical milestone.

③ Rarible

sealaunch|Website|Dashboard

Over the past 6 months, 170,000 unique wallets have minted over 500,000 NFTs via Rarible Drops

• Rarible’s product line has expanded beyond the Rarible Marketplace (secondary NFT market) to include : RaribleX (NFT marketplace as a service), NFT infrastructure provided by Rarible API, and Rarible Drops (multi-version NFT launch platform). In terms of sales volume, Rarible GMV still mainly occurs in the Rarible Marketplace (secondary market), accounting for about 90% of the total volume.

Dune Analytics - @sealaunch_team

• On the other hand, Rarible Drops (primary market) allows creators to launch multi-version NFTs using Rarible on multiple chains, It has successfully attracted a large number of NFT minters, accounting for more than 80% of total users and transactions.

Dune Analytics - @sealaunch_team

• In the past 6 months, Rarible Drops have achieved over 500,000 mints from different chains (Ethereum, Polygon , Celo, Rari and Base), generating over $290,000 in minting revenue. One of the most successful launches was “Anticipation (of a future event)”, which triggered a surge in minting numbers on April 24, resulting in over 190,000 mintings and over 48,000 participating users.

Dune Analytics - @sealaunch

④ Hyperspace

Ali Taslimi| Website |Dashboard

Hyperspace on Avalanche of users received $12 million in rewards, while the market generated only $6 million in revenue

• Hyperspace activity plummeted, from processing millions of dollars in transaction volume to barely 10,000 per day Dollar. This change comes after they announced the end of their rewards program in June. Over the past few months, many NFT markets have also experienced significant declines in activity following the discontinuation of incentives. While the promise of airdrops or rewards initially attracted users, these incentives did not appear to promote user loyalty and long-term engagement.

Flipside - @alitaslimi

• Marketplace users have earned a total of $12 million in rewards over seven seasons. Despite generating approximately $6 million in revenue, a significant portion of the rewards program was reportedly funded by Ava Labs, calling its long-term sustainability into question.

Flipside - @alitaslimi

• Since the beginning of 2024, a significant portion of NFT sales have been wash trades, which has negatively impacted rewards programs. These incentives could lead to farm-like behavior, which could be another reason to terminate the program.

Flipside - @alitaslimi

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