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ART & COLLECTABLES

Global NFT Sales have Dropped by More than Half

After customer interest in digital collectibles declined in March, global NFTs saw a further decline in sales volume.

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#nft #nfthours #salesdropping

While March saw about $2.3 billion in NFT sales volume, it was still a challenging month for the overall space.

This figure is noteworthy for NFT detractors because they believe that digital treasures will eventually replace traditional art, which millions of DeFi aficionados and blockchain technology experts still see as a novelty.

Global NFT sales declined by 21% between February 2022 and 2023, totaling $2.92 billion.

Could the reduction have a negative impact on the future of digital collectibles?

The drop in sales over the last month could affect digital collectibles, as new buyers would compare sales data from previous months to determine whether or not to invest in NFTs. Despite a 493 percent increase in global NFT sales from March 2021 to $387 million, the periodical buildup of investor demand for NFTs has failed to reach the previous year’s new highs.

In August 2021, global NFT sales achieved an all-time high. Bored Ape Yacht Club (BAYC) had a yearly peak of roughly $297 million, and NBA TopShot had an outstanding $37 million in sales volume. The total sales volume for the NFT market was in the $4.91 billion range.

The bearish engulfing towards the end of 2021 did not augur well for Global NFT sales since the entire market follows the price patterns of Bitcoin (BTC) and altcoins. The August 2021 milestone fell by 33% to over $3.27 billion in September 2021 and then fell by another 46% to around $2.61 billion in the final month of 2021.

Overall, there was a $2.61 billion difference between the all-time high Global NFT sales in August 2021 and March 2022. In just seven months, revenues had dropped by 53%.

What caused the sales decline in Global NFTs? 

The dip in sales volume can be linked to factors such as a decrease in the number of unique purchasers, transaction counts, and average sales value.

Unique Buyers 

During the market’s recovery in November 2021, there were a total of 901,078 unique purchasers. In December 2021, there was a minor dip to 886,550. Despite a drop in sales in February and March 2022, the total number of unique customers in the first two months of that year was outstanding. 944,234 and 879,261 unique buyers were recorded in January and February 2022, respectively.

For the month of March 2022, there were 630,461 unique buyers. This represented a 30 percent loss in November 2021, a 28 percent dip in December 2021, a 33 percent drop in January 2022, and a 28 percent drop in February 2022.

Transactions 

In November 2021, total transactions reached an all-time high of roughly 6.16 million. This record was broken in 2022, when 6.8 million transactions were processed in January and February. Unfortunately, March was unable to match the previous months’ achievements, ending with around 5.45 million transactions.

The number of transactions in March 2022 was down 11% from November 2021, 20% from January 2022, and 19% from February 2022.

Average Sales Value 

The average sales value in March was $422.17, which is a fraction of the $1,120.42 average sales value reported in August 2021. In January and February 2022, the average sales value was $655.63 and $429.50, respectively.

The basic rules of demand and supply have set in as a result of the increased production of digital collectibles. The greater the quantity of NFTs, the lower the price of indestructible, indivisible, non-interoperable, and verifiable collections.

NFT sales have surpassed $150 million globally. With various football clubs, sportsmen, and entertainers releasing digital collectibles, global sales might retest or perhaps surpass the all-time highs set in August 2021.

ART & COLLECTABLES

Ford is getting ready to enter the Metaverse with digital cars and NFTs

A month after the company announced significant personnel reductions, it has filed a trademark application covering its future initiatives in the Metaverse and NFT space.

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Ford Motor Company, an American automaker, has filed 19 trademark applications across its key automobile brands as it prepares to enter the realm of nonfungible tokens (NFTs) and the Metaverse.

Mike Kondoudis, a trademark attorney licensed by the United States Patent and Trade Office (USPTO), disclosed in a tweet on Wednesday that the business had submitted a total of 19 trademark applications covering its car brands, including Mustang, Bronco, Lincoln, Explorer, and F-150 Lightning, among others.

The trademark applications include a projected online marketplace for NFTs and virtual versions of its businesses’ automobiles, trucks, vans, SUVs, and clothes.

Ford intends to produce digital images of its vehicles, SUVs, trucks, and vans that will be verified by NFTs, according to USPTO filings submitted by the automaker on September 2.

The business also disclosed plans for “downloadable virtual commodities,” or “computer programs,” that would include apparel, accessories, and parts for vehicles for usage in “online virtual environments,” such as virtual and augmented reality trade exhibitions.

Additionally, there are plans to develop an online marketplace for “others’ digital artwork” as well as “online retail shop services featuring non-fungible tokens (NFTs) and digital collectibles.”

Less than a month after Ford Executive Chairman Bill Ford and CEO Jim Farley announced significant personnel reductions from its global workforce to decrease corporate expenses; Ford has decided to enter the Web3 area.

Ford isn’t the first automaker to enter the Metaverse market.

While premium automakers like Bentley and Lamborghini have already launched NFT collections, automakers including Nissan, Toyota, and Hyundai have indicated ambitions to enter the fast-expanding Metaverse market.

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ART & COLLECTABLES

Crypto-Vultures Profit from the Death of Queen Elizabeth

Only a few hours after the Queen’s passing, more than 40 meme tokens bearing her name have been released.

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Yesterday, according to Buckingham Palace, Her Majesty Queen Elizabeth II passed away. Although her loss triggered a global outpouring of sympathy and grief, it has also been exploited as a money-grab.

Elizabeth II, monarch
Grift endures eternally, but the Queen is gone.

There are over 40 meme coins on Ethereum and the Binance Smart Chain thanks to Queen Elizabeth’s passing (and at least one exploitative NFT collection).

While the news of the British monarch’s demise saddened people worldwide, cryptocurrency scammers took advantage of the occasion to launch dozens of meme coins with Queen themes on Ethereum and Binance’s BNB Chain.

Among the new crypto coins that were introduced are “Queen Elizabeth Inu,” “Queen Doge,” “God Save The Queen,” “London Bridge Is Down,” “Queen Grow,” “Rip Queen Elizabeth,” “Elizabeth II,” and “Queen Inu II.” Other tokens with the name of the next king, King Charles III, have also appeared. According to DexScreener, at least 40 separate meme coins appear to have been produced in the previous six hours.

The most liquid tokens, Save The Queen and Queen Elizabeth Inu, have already processed trade volumes of around $700,000 and $200,000 since their debut. At the time of writing, the price of Queen Elizabeth Inu is up 1,517%, while it has increased by 23,271% on Binance Smart Chain and 3,708% on Uniswap. Prices are incredibly unstable and exceedingly unlikely to persist.

The “Queen Elizabeth 69 Years NFT” NFT set has reportedly been produced. One image is said to represent each year of the Queen’s reign in the collection. The project’s aims should be questioned because Elizabeth II reigned for 70 years, not 69.

The crypto community, typically known for its gallows humor, mainly reacted negatively to the initiatives. When told about the NFT collection, NFT aficionado ThreadGuy said, “You’re going to hell.” Trader Byzantine General declared, “We’ve got to stop this crypto stuff.”

In 1926, Queen Elizabeth was born. She was the longest-reigning British monarch in history and passed away in Balmoral Castle at 96.

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ART & COLLECTABLES

One crypto sector, according to billionaire Chamath Palihapitiya, is experiencing a classic bubble cycle

One crypto sector may be going through a typical hype cycle, according to billionaire investor and software entrepreneur Chamath Palihapitiya.

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In a new episode of the All-In podcast, the CEO of Social Capital discusses the sharp decline in trading volume in the non-fungible token (NFT) market.

Palihapitiya offers Coachella and Burning Man as examples of major music festivals that strive to be distinctive but may wind up being mostly the same.

The billionaire contrasts NFTs and the overall art market with the two music events.

“I do believe that there is something going on; the simplest way to explain this is with the Burning Man/Coachella scenario. Many of these things are similar, but when some people approach anything new, they are too insecure to accept that it is similar to another item, so they spend a lot of time attempting to convince you that it is different. When someone says that a time is different, it’s probably not that different, as stated in the Warren Buffett quote, is an example. Or consider the other famous historical adage, “Things don’t always repeat in history, but they rhyme.”

All of this is meant to imply that, aside from major advances in science, not much new has been discovered recently. We keep repeating the same patterns, and one of them is the social capital that comes from making certain decisions and then having those decisions validated by others in order to feel valuable. And this occurred in NFTs, as well as, I’m sure, in the initial stages of several artistic movements. These events are more comparable than dissimilar because they have presumably occurred in a number of other markets as well.

Burning man and Coachella are same. The art market and NFTs are both the same. It doesn’t need to be unusual; you can simply appreciate it because you think it’s cool. I would just take it with a grain of salt and tell anyone who comes to you asking why it’s so different.

DappRadar reports that earlier last week, trading volume on popular NFT marketplace OpenSea reached a one-year low.

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