This week's trading volume fell a further 16% compared to last week, dipping below the lowest value of the year. As the market has once again gone cold, NFT projects are seeing a simultaneous drop in price and volume. Apart from blue-chip projects, which have seen a slight increase in the recent change of hands, the vast majority of projects are suffering from a lack of liquidity as seen from the low number of pending orders and transactions. This indicates that both buyers and sellers are currently dissatisfied with the price.
It is worth noting that, having gone through two previous cycles, the NFT market is now under extremely weak trends and is having a prolonged period of minimal trading volume. This indicates that most people have a very high degree of recognition of the market's future trends.
In this week, the number of NFT traders increased by 8% compared to last week, where the number of sellers rose (10%) more than the number of buyers (8%). However, in general, sellers continue to outnumber buyers. Most people have opted to halt trading activities, whereas those who are still active tend to sell their assets. All in all, we still await a recovery in buying power.
After an overall decline last week, blue chip NFTs have still not rebounded this week and are currently stuck in the lowest price range in history. Combined with the decline in ETH prices, the dollar prices of most blue chip NFTs have incurred an accelerated decline this week.
Just like what we have been mentioning: blue chip NFT collections has not ushered in a strong rebound after falling below this year's historical price lows. This recent dip further proves the lack of buying power and capital in the market.
Last week, there was some "standoff" between the outflows and inflows of whales capital. In the end, the sellers prevailed. With outflows dominating the market this week, there was a net outflow of nearly $800,000. In every standoff between capital inflow and capital outflow that happened in the second half of this year, the sellers won. This is a clear indication of the whales' lack of willingness to buy under current market conditions.
It should be noted that the current NFT market is still small in terms of the size whales capital as most whales have reduced their investments in the market and are appearing "offline".
This week, whales have reduced buying NFTs. Besides classic projects like Bored Ape Yacht Club, Art Blocks, CryptoPunks, and Otherdeed, there are a few new projects that made it to this week's list.
The figure below shows the top 15 NFTs bought by whales and the amount and average costs.(Some values may be affected by extreme values and are for informational purposes only.)
Since May of this year, the total market cap of the crypto market has fallen 60% from $2 trillion to $800 billion. Unfortunately, the NFT market has also been affected and has been inactive for a prolonged period of time. Adding to the fact that the NFT market dipped lower this week, we noticed that funds are still on the sidelines. Many NFT investors are worried by the consecutive price drops of blue chip NFTs as they comprise a significant part of the market. NFTGo Research will conduct further data analyses to help NFT enthusiasts better understand the market. When will the buying power recover? When will the market rebound? Stay tuned to nftgo.io's Market Review to get up-to-date information.
Disclaimer: The above information is for informational purposes only. Investing in digital assets such as NFTs and cryptocurrency brings with it a high degree of risk. Please consult with a financial advisor before making any investment decisions. NFTGo.io does not provide financial advice and is not responsible for any losses incurred as a result of investing in digital assets.