NFT Industry Hit Hard In March With 31% Decline In Revenue – Here’s Why

Christian Encila

2 years ago

3 mins read

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Despite the broader crypto market being bullish in the past few days, the NFT industry has been battered by a sharp decrease in revenue across the board.

According to CryptoSlam, NFTs sales volume dropped by nearly 31% since last month. This has been in complete contrast to the crypto market which regained lost ground from a disastrous 2022.

Although several big developments around NFTs should’ve helped with the sentiment surrounding the asset, being a new asset class, there are still doubts about whether there is actual utility behind the tech.

For now, let’s take a look at the dire situation the NFT industry is in.

It Doesn’t Look Great For NFT Industry

The current data suggests that the industry will struggle in the short to medium-term. In terms of blockchains, Ethereum still leads the market in sales and transactions. Collections-wise, Bored Ape Yacht Club is still the market leader with $38 million worth of sales.

Despite this, the market seems to freefall at the moment. Data from the Forkast 500 NFT Index shows a 4% decline in the past month. Buyers of NFTS also fell by a significant margin since last month, shedding 34% to its current value of 1.3 million. Total transactions have also decreased by 22% to 5.7 million

Nonetheless, there seems to have a trend in the NFT market. The Ethereum blockchain, although still the number one chain to trade and mint NFTs on, has been suffering a significant dip in almost all metrics. Other “minor” blockchains like ImmutableX, Polygon, Solana, and Arbitrum all saw big jumps in transactions.

It should be noted, however, that Polygon is a layer 2 platform built on top of the Ethereum blockchain. The jump in transactions on the L2 might not reflect on the overall metrics of its parent L1 chain.

Crypto total market cap retains peg on the $1.14 trillion level on the daily chart at TradingView.com

How This Would Affect The NFT Sector

This recent development in the NFT market would certainly affect the rate of adoption of non-fungible tokens as both a form of asset and technology. However, the rising metrics of the minor blockchains reveal that investors are diversifying from NFTs minted on the Ethereum blockchain.

For NFT investors, the market could experience pain in the short to medium term. Investors and traders should then diversify in the minor blockchains with rising transactions as this is the place where they’ll get the most out of their money.

-Featured image from Getty Images

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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