Nansen | Are 67% of the newly minted NFTs profitable in May? Don't get too excited, here's the actual market situation

According to on-chain data company Nansen, 67% of newly minted NFTs in May were profitable. While this may sound positive in the midst of an NFT bear market, Nansen points out that when looking at the data over a longer time frame, you will find that the number of new NFTs minted in May decreased by 65% compared to April.

Has the NFT Craze Data Died Down?

According to statistics from Nansen, the number of newly minted NFTs in June 2023 has dropped back to a low point from two years ago, and it has not sharply declined to the current low minting quantity over the past two years. This could indicate that the teams or individuals willing to invest in new NFT issuance have significantly decreased.

Interpreting Nansen's chart, it categorizes the data into three types:

• Green – Transaction volume greater than 10 in a month, floor price > issuance price
• Yellow – Transaction volume greater than 10 in a month, floor price < issuance price
• Red – Transaction volume less than 10 in a month, including 0, dead NFTs

From January 2021, the number of newly issued NFTs only began to grow until August 2021. From 2022 to January 2023, there were over 1500 new NFTs issued every month.

Despite the majority of NFTs being classified as dead NFTs, there are still many new NFTs eager to try, until the sharp decrease in issuance numbers in May of this year.

On the other hand, in a positive light, very few of the new NFTs in May were classified as dead NFTs, with most NFTs priced higher than their minting price. However, this does not prove that the market will launch more enduring NFTs, as it is also related to factors such as liquidity, which cannot be conclusively inferred.