March 29, 2024

Footprint Analytics: NFT Trading Volume Drops 40% in Q2

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Footprint Analytics: NFT Trading Volume Drops 40% in Q2

Research agency Footprint Analytics reported that speculative and social sentiment in the non-fungible token market led to a 41% decline in NFT trading volume.

A report by Footprint Analytics says that despite an exceptionally successful start to the year for non-fungible tokens (NFTs), the second quarter does not look likeso optimistic as the public's interest in digital collectibles began to wane.

Analysts note that investments have been flowing into the NFT market since the beginning of the year due to the decline in prices in the cryptocurrency market.This brought the non-fungible token market to an "unprecedentedly active trading volume," which reached a new high of $8.6 billion.However, in mid-May, the cryptocurrency industry faced significant problems and the NFT market "cooled down".

"NFT trading volume fell from $19.02 billion in Q1 to $11.26 billion in Q2," the report said.

An industry survey conducted in June found that 64.3% of those surveyed bought NFTs only for speculation.This is probably why the trading volume in the second quarter fell when the cryptocurrency marketThe second most popular reason, cited by 14.7% of respondents, is to purchase NFTs with a desire to "join the community and experiment." 

Only 12.4% of survey participants said their motivation for buying NFTs was collecting digital art.An even smaller percentage – 8.6% – said they buy NFTs primarily to access games and tools.

Earlier, CryptoSlam analysts said that sales on the secondary NFT market fell by 25% over the month to $650 million. It is expected that the market recession phase may last several years.