Pranksy’s Optimism About the Future of NFTs
Non-Fungible Token (NFT) collector Pranksy is optimistic about the fate of NFTs, and the story of their decline is developing. Pranksy, an early NFT investor who has built a large following and collection, recently asked his X followers about the last time they purchased an NFT. The post garnered nearly 118,000 views and more than 500 replies, with Pranksy saying the NFT space is still alive and kicking. “500 real answers, there’s still an old girl’s life,” he wrote, hinting that the future of NFTs is still vibrant.
NFT transaction data paints a different picture
Pranksy’s optimism contrasts with data from CryptoSlam, which paints a more complex picture of the future of NFTs. International NFT revenues in May totaled $4 million, marking the lowest overall monthly performance compared to October of the previous year. It also marks the first month in 2024 with earnings below $1 billion. It also marked the first month in 2024 with less than $1 billion in income. Billion mark.
Ethereum (NASDAQ:ETH), the leading blockchain with over $43 billion in NFT sales of all time, suffered a decline in sales and recorded sales of $164 million, the lowest since September. In particular, the number of net buyers of Ethereum also decreased significantly, with only 56,914 net buyers in May, the lowest since June 2021.
The slump in NFT sales is not limited to Ethereum. Even the Bitcoin (NASDAQ:BTC) network saw a decline. Bitcoin recorded monthly sales of $0 million, which is the lowest considering it is October. Both consumers and suppliers expect the Bitcoin community to hit record lows this year. However, amid sluggish sales for major blockchains, Solana (NASDAQ:SOL) has bucked the trend in terms of activity.
Solana recorded monthly sales of $93 million, falling below $100 million for the first time since November last year. Solana additionally performed new information for consumers and merchants on a monthly basis, accurate to 346,229 and 594,555 addresses respectively. Despite Solana’s active user base, the average NFT price on the network has been declining, with average monthly sales hitting $37.8, the lowest this year.
NFT Prices Drop to Lowest Despite Bullish Crypto Trends
The broader cryptocurrency market has proven to have a bullish trend heading into 2024, with a number of major tokens experiencing fee surges, but this is now no longer accompanied by NFT ground fees. The price floors of the top five major NFT collections have fallen significantly.
- Bored Monkey Yacht Club (BAYC): Once the crown jewel of the NFT space, the ground rate for BAYC plummeted from an all-time high of 153 ETH to 8.99 ETH.
- Cryptopunk: This iconic series will see ground charges drop from a high of 125 ETH to 25 ETH.
- Chunky Penguin: The lowest price for a collection of 8,888 penguin avatar NFTs on the Ethereum blockchain also dropped from 22.9 ETH to 8.99 ETH.
- Azuki: The lowest price for this once highly popular anime-themed collection has dropped from 31.8 ETH to 3.09 ETH.
- CloneX: The ground rate for CloneX launched using RTFKT decreased from 19.5 ETH to 0.36 ETH.
The decline suggests a full-scale retracement from the height of the NFT boom, while the broader cryptocurrency market enjoys renewed investor confidence.
Company drops NFT feature
There are many companies that are ceasing their participation within the NFT space. Last March, famous multinational coffee chain Starbucks (NASDAQ:SBUX) ended its NFT rewards program. In January, gaming retailer GameStop (NYSE) announced it was shutting down its NFT marketplace after scaling back its cryptocurrency offerings over the past two years. Recently, Elon Musk-owned X discontinued the ability for high-end customers to apply NFT photos as profile pictures.
Despite the waning interest in the NFT space, there has been some positive news. Last month, famous Portuguese soccer player Cristiano Ronaldo revealed that he had teamed up with Binance to launch his fourth NFT collection. Released on the Binance NFT Marketplace on May 29, the collection pays tribute to Ronaldo’s illustrious career and features highlights from his football journey.
However, it is worth noting that Ronaldo has been embroiled in legal trouble with Binance over his involvement in the sale of his NFT collection. In November 2023, Ronaldo faced a class action lawsuit in a U.S. district court in Florida. The plaintiffs allege that Ronaldo actively engaged in the offering and sale of unregistered securities in collaboration with Binance and that he should have known that Binance was involved in such activities.
conclusion
In summary, while Pranksy’s optimism about the future of NFTs is notable considering his status and experience, CryptoSlam’s data tells a more nuanced story. Declining average buy and sell volumes of top collections and falling ground costs highlight the challenging situation the market is experiencing in 2024. Despite some positive developments, the future of NFTs continues to navigate a complex and volatile environment.
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