Tag Archives: falls

Ethereum NFT production falls to all-time low in September

Ethereum NFT production falls to all-time low in September

Non-fungible token (NFT) production on Ethereum, or the value of the primary sales generated from NFT minting, fell to an all-time low of US$17.55 million in September, down 12.4% from US$20.05 million in August, according to Forkast Labs data.

NFTs are blockchain-based digital assets that can provide information on digital ownership. Notable collections like the Bored Ape Yacht Club (BAYC) were trading at a floor price of 128 ETH (US$211,000) in May 2022, before dropping more than 60% along with other notable NFT collections like CryptoPunks, which fell 60.4% to 45 Eth (US$72,727), from an all-time high of 113.9 Eth (US$184,080) recorded on Oct. 9, 2021.

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“Blue-chip NFT collections such as Bored Ape Yacht Club and CryptoPunks serve as indicators of broader NFT market sentiment. Their decline might signify a shift in investor sentiment, perhaps questioning the intrinsic value of such assets,” Matan Doyich, the chief executive officer of Crypto Index, a firm building centralized infrastructure for tokenized crypto exchange-traded funds, told Forkast.

Reflecting the overall NFT bear market, the Forkast ETH NFT Composite, an index that measures the performance of the top 250 NFTs in the Ethereum blockchain, fell 48% year-to-date to an all-time low of 715.22 points recorded on Sept. 28.

NFT production on the Polygon blockchain fell to a seven-month low of US$4.7 million in September, down from a yearly high of US$14.44 million in August. Polygon NFT production is up 219% year-to-date, from US$1.47 million in January. Despite the rising numbers, the Forkast POL NFT Composite fell over 46% year-to-date.

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The overall NFT market slump, along with the decrease in NFT production, can be attributed to a loss of interest by NFT investors, according to Anndy Lian, author of NFT: From Zero to Hero.

“The NFT market was driven by a lot of hype in 2021. However, this has died down in recent months, as people have become more realistic and choosy about the kind of NFTs they want,“ said Lian.

NFT services revenue on Ethereum, or total marketplace fees and creator royalties from secondary sales, fell 84.4% year-to-date to US$6.01 million in September from US$38.74 million in January according to Forkast Labs data.

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At OpenSea, one of the world’s largest NFT marketplaces, the protocol’s monthly NFT trading volume fell 31.8% to US$76.79 million in September from US$112.74 million in August, according to data from The Block.

Blur, OpenSea’s rival marketplace, had its trading volume fall 38.3% to US$150.42 million in September, down from US$243.92 million in August.

“To reignite interest in NFTs, the industry needs to see and demand innovations that go beyond digital art and collectibles, such as incorporating NFTs into more substantial real-world applications,” Doyich told Forkast.

This year brought new use cases for NFTs, which will be needed to drive institutional investors, according to David Tng, managing director at TZ APAC, the Asian entity of the Tezos blockchain.

“NFTs will rely on the same pain point of needing to prove their utility, especially against the backdrop of a very volatile market. However, we are still seeing rapid growth and innovation. Enterprises and artists continue to use NFTs as a platform to explore, create and engage with their audiences,” wrote Tng, in a statement shared with Forkast.

Despite the market slump, globally recognized brands continue adopting NFTs. Starbucks launched an NFT version of its iconic pumpkin spice latte last Thursday, to commemorate the 20-year anniversary of the iconic drink. The NFTs worth US$20 have no minting limit and users will receive 250 bonus points that can be spent to improve their Starbucks Odyssey experience, which is the company’s Web3 rewards and loyalty platform.

 

Source: https://finance.yahoo.com/news/ethereum-nft-production-falls-time-123000793.html

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Ethereum NFT production falls to all-time low in September

Ethereum NFT production falls to all-time low in September

NFT production on Ethereum fell to an all-time low in September, as the floor prices of blue-chip NFT collections continued their decline.

Non-fungible token (NFT) production on Ethereum, or the value of the primary sales generated from NFT minting, fell to an all-time low of US$17.55 million in September, down 12.4% from US$20.05 million in August, according to Forkast Labs data.

NFTs are blockchain-based digital assets that can provide information on digital ownership. Notable collections like the Bored Ape Yacht Club (BAYC) were trading at a floor price of 128 ETH (US$211,000) in May 2022, before dropping more than 60% along with other notable NFT collections like CryptoPunks, which fell 60.4% to 45 Eth (US$72,727), from an all-time high of 113.9 Eth (US$184,080) recorded on Oct. 9, 2021.

“Blue-chip NFT collections such as Bored Ape Yacht Club and CryptoPunks serve as indicators of broader NFT market sentiment. Their decline might signify a shift in investor sentiment, perhaps questioning the intrinsic value of such assets,” Matan Doyich, the chief executive officer of Crypto Index, a firm building centralized infrastructure for tokenized crypto exchange-traded funds, told Forkast.

Reflecting the overall NFT bear market, the Forkast ETH NFT Composite, an index that measures the performance of the top 250 NFTs in the Ethereum blockchain, fell 48% year-to-date to an all-time low of 715.22 points recorded on Sept. 28.

NFT production on the Polygon blockchain fell to a seven-month low of US$4.7 million in September, down from a yearly high of US$14.44 million in August. Polygon NFT production is up 219% year-to-date, from US$1.47 million in January. Despite the rising numbers, the Forkast POL NFT Composite fell over 46% year-to-date.

The overall NFT market slump, along with the decrease in NFT production, can be attributed to a loss of interest by NFT investors, according to Anndy Lian, author of NFT: From Zero to Hero.

“The NFT market was driven by a lot of hype in 2021. However, this has died down in recent months, as people have become more realistic and choosy about the kind of NFTs they want,“ said Lian.

NFT services revenue on Ethereum, or total marketplace fees and creator royalties from secondary sales, fell 84.4% year-to-date to US$6.01 million in September from US$38.74 million in January according to Forkast Labs data.

At OpenSea, one of the world’s largest NFT marketplaces, the protocol’s monthly NFT trading volume fell 31.8% to US$76.79 million in September from US$112.74 million in August, according to data from The Block.

Blur, OpenSea’s rival marketplace, had its trading volume fall 38.3% to US$150.42 million in September, down from US$243.92 million in August.

“To reignite interest in NFTs, the industry needs to see and demand innovations that go beyond digital art and collectibles, such as incorporating NFTs into more substantial real-world applications,” Doyich told Forkast.

This year brought new use cases for NFTs, which will be needed to drive institutional investors, according to David Tng, managing director at TZ APAC, the Asian entity of the Tezos blockchain.

“NFTs will rely on the same pain point of needing to prove their utility, especially against the backdrop of a very volatile market. However, we are still seeing rapid growth and innovation. Enterprises and artists continue to use NFTs as a platform to explore, create and engage with their audiences,” wrote Tng, in a statement shared with Forkast.

Despite the market slump, globally recognized brands continue adopting NFTs. Starbucks launched an NFT version of its iconic pumpkin spice latte last Thursday, to commemorate the 20-year anniversary of the iconic drink. The NFTs worth US$20 have no minting limit and users will receive 250 bonus points that can be spent to improve their Starbucks Odyssey experience, which is the company’s Web3 rewards and loyalty platform.

 

Source: https://forkast.news/ethereum-nft-production-falls-all-time-low-september/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Bitcoin Ordinals profitability falls in July, but total inscriptions pile on

Bitcoin Ordinals profitability falls in July, but total inscriptions pile on

Revenue for NFT services on the Bitcoin network, or the aggregate value of marketplace fees and creator royalties, declined over July even as total Ordinals inscriptions crossed 20 million.

A screenshot of Ordinals Punks, from Bitcoin Ordinals Market
Image: Ordinals.Market

The profitability of Ordinals inscriptions, an iteration of non-fungible tokens (NFTs) on the Bitcoin network, declined throughout July, Forkast Labs data show.

Monthly NFT services revenue, or the sum of marketplace fees and creator royalties on the Bitcoin network, fell to US$1.22 million in July from US$3.13 million in June, suggesting lower profitability for Ordinals sales on the Bitcoin network.

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Ordinals is an iteration of NFTs on Bitcoin, the world’s first and largest blockchain network by market capitalization. Bitcoin had a market capitalization of US$562 billion as of Tuesday, dominating 48.2% of the total cryptocurrency market.

Despite lower profitability, Ordinals broke a daily inscriptions record on July 30 with 422,164, after reaching 20 million total inscriptions on July 28, showing the market’s continued support and interest in Bitcoin-native NFTs, according to data from Dune Analytics. The network exceeded 21 million total inscriptions on Tuesday.

Kadan Stadelmann, chief technical officer of blockchain infrastructure firm Komodo, said that the oversaturation of Ordinals is among the main factors contributing to the declining profitability of Bitcoin NFTs.

“With an influx of new projects and artists entering the space, buyers now face a plethora of options, diluting the value and appeal of individual pieces,” Stadelmann told Forkast.

Tom Tirman, the chief executive officer of NFT rental platform IQ Protocol, suggested that the persistent creation of Ordinals could be a strategic move by investors who — having missed out on prior opportunities — are aiming to position themselves advantageously for the anticipated future expansions of Bitcoin NFTs.

“As we often see in other vital innovations recorded in the industry in the past, Ordinals are bound to regain their momentum after a remarkable use case is tagged with them,” he said.

Profits from secondary market sales have also been declining. The average sale price for Ordinals fell to US$214.03 in July from US$900 in June and US$1,178 in May, according to CryptoSlam data. At its peak in March, Ordinals traded at an average value of US$9,357.

According to Yehudah Petscher, NFT strategist at Forkast Labs, the weaker Ordinals price reflects lower NFT sales volume, as declining interest from buyers pushes sellers to lower prices.

“There’s too much potential on the crypto side of things for traders to want to trade NFTs or Ordinals right now, and there’s also a bit of a liquidity issue. Simply put, traders are out of money. Bitcoin and crypto in general running will fix both of these issues,” said Petscher.

Not just Bitcoin

Although key performance indicators for Ordinals tumbled in July, the Bitcoin network maintained its position as the month’s second most active blockchain in the world for NFTs ranked by sales volume with over US$64.9 million, trailing Ethereum’s US$273.9 million, CryptoSlam data shows.

“The decline in total revenue for NFT services on the Bitcoin network after May does not necessarily signify a lack of interest in Ordinal inscriptions specifically,” Anndy Lian, author of NFT: From Zero to Hero, told Forkast. “Instead, it points to a broader trend in the NFT market as a whole. The decrease in revenue is likely indicative of a general downturn in the NFT market, affecting all types of NFT services and not just Ordinal inscriptions.”

David Atterman, the chief executive officer of crypto-based engagement platform Most.Fan, agreed with Liann, attributing the falling profitability of Ordinals to the poor performance of the overall NFT market.

“Projects that do not carry utility for new users and that do not focus on mass adoption, quickly lose their significance and are unlikely to recover at the next bull run,” said Atterman.

According to Petscher, the next NFT bull run will follow the cryptocurrency market.

“We also need to see some type of innovation happen in NFTs to bring back traders who have realized that currently, there’s not much substance that’s worth investing in,” he said.

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Standard Chartered, a British multinational bank, said in a July research report that Bitcoin prices will top US$120,000 in 2024, fueled by Bitcoin’s halving event set to occur in April 2024. The halving will reduce Bitcoin’s current supply inflow of 6.25 BTC every 10 minutes to 3.125 BTC. Each halving cycle to date has resulted in a new price record for Bitcoin.

Source: https://forkast.news/bitcoin-ordinals-profitability-inscriptions/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j