NFT

NFT trading volume declining daily, Coinbase investor: Strongly advise against following the trend, I have done my research

share
NFT trading volume declining daily, Coinbase investor: Strongly advise against following the trend, I have done my research

Since the end of July, the NFT frenzy led by CryptoPunks has subsided for two weeks, with the trading volume of many top NFT projects continuously declining. It seems like a new topic is needed to drive demand?

Table of Contents

NFT Market Data

According to data from NonFungible, the total trading volume in the NFT market this week has gradually declined. The trading volume on the 15th is approximately $18.6 million, a decrease of about 77% compared to the peak of $81.5 million.

From the data on CryptoSlam, it can also be seen that the most popular NFT projects in the market in the past month, such as CryptoPunk, Bored Ape Yacht Club, and Meebits, have also experienced a significant decline in trading volume over the past week. They have decreased by 71.5%, 56.2%, and 78.3% respectively.

Although not all NFT projects have experienced a significant decline in trading volume this week, projects like Art Blocks have seen an increase in trading volume by 112.8% this week. However, from the market data, the trading activity of most projects is not as strong as in the past few weeks.

Last Friday, Coinbase angel investor Gary Vaynerchuk also released a short video on Twitter, stating, "I strongly recommend not buying into specific NFTs just because I or someone else bought them. I buy these NFTs because I want to support people I like and believe in. I have done a lot of homework on these NFT projects to understand them better. I see a lot of people following influential figures because they think prices and trading volumes will skyrocket. But this is not a long-term strategy, and 90% of people will eventually fail."

"I buy to learn," emphasized Gary Vaynerchuk.

Based on the current market conditions, the NFT market still remains a speculative market, and most buyers do not actually intend to hold these NFTs for the long term. When the trend fades, trading volumes in the market plummet, liquidity becomes quite poor, and buyers who are driven by speculation mostly cannot sell their assets at their desired prices.

However, the globally renowned auction house CHRISTIE'S will be hosting an NFT auction in Hong Kong in September, featuring valuable NFT projects such as CryptoPunk, Bored Ape Yacht Club, and Meebits. Perhaps the slightly subdued performance in the current NFT market is just the calm before the storm, and the auction led by CHRISTIE'S next month may once again trigger a frenzy in the NFT market.

NFT