Are NFTs Dead? Mega Collector Pranksy Says Not Yet
Well-known non-fungible token (NFT) collector Pranksy has voiced optimism about the future of NFTs, countering a growing narrative of their decline.
Pranksy, an early NFT investor who has built a large following and collection, asked his X followers in a recent post about the last time they purchased an NFT.
The post has received nearly 118k views and more than 500 replies, prompting Pranksy to state that the NFT space is still living and breathing.
“500 genuine replies, there is life in the old girl yet,” he wrote in reply to the initial post, implying that the NFT space is still active.
500 genuine replies, there is life in the old girl yet. 👀 https://t.co/sDA706qrgr
— Pranksy 📦 (@pranksy) June 24, 2024
NFT Trading Data Tells a Different Tale
Pranksy’s optimism stands in contrast to the data from CryptoSlam, which paints a more complex picture of the NFT market.
In May, global NFT sales totaled $604 million, marking the lowest monthly performance since October of the previous year.
It was also the first month in 2024 to witness sales below the $1 billion mark.
Ethereum, the leading blockchain for NFT sales with a historic volume of over $43 billion, experienced a decline in sales as well, recording $164 million in sales, the lowest since September.
Notably, Ethereum’s number of unique buyers also dropped significantly.
According to CryptoSlam data, the blockchain had 56,914 unique buyers in May, the lowest count since June 2021.
The slump in NFT sales was not exclusive to Ethereum; even the Bitcoin network saw a decline.
Bitcoin recorded $160 million in monthly sales, the lowest figure since October. Both the buyer and seller count on the Bitcoin network hit their lowest points this year.
However, amidst the sales slump on major blockchains, Solana appeared to defy the trend in terms of activity.
The blockchain recorded $93 million in monthly sales, marking the first time it fell below the $100 million mark since November of the previous year.
Solana also achieved new records for monthly unique buyers and sellers, with 346,229 and 594,555 addresses respectively.
Despite Solana’s active user base, the average NFT price on the network is experiencing a decline. The average monthly sales value stands at $37.8, the lowest figure recorded this year.
Falling NFT Floor Prices Despite Bullish Crypto Trends
While the broader cryptocurrency market has shown bullish trends in 2024, with several major tokens experiencing price surges, NFT floor prices have not followed suit.
Here is how the top 5 major NFT collections are doing in terms of their floor prices:
- Bored Ape Yacht Club (BAYC): Once the crown jewel of the NFT space, BAYC’s floor price has plummeted from an all-time high of 153 ETH to around 8.99 ETH.
- CryptoPunks: The iconic collection has seen its floor price drop from 125 ETH at its peak to 25 ETH.
- Pudgy Penguins: A collection of 8,888 penguin avatar NFTs on the Ethereum blockchain has also seen its floor price drop from 22.9 ETH to 8.99 ETH.
- Azuki: This anime-themed collection, once highly sought after, has seen its floor price dip from 31.8 ETH to 3.09 ETH.
- CloneX: Launched by RTFKT, CloneX’s floor price has decreased from 19.5 ETH to 0.36 ETH.
These declines suggest a significant retracement from the heights of the NFT boom, even as the broader crypto market enjoys renewed investor confidence.
Companies Drop NFT Features
It is worth noting that there has been a trend of companies discontinuing their involvement in the NFT space.
Back in March, Starbucks, the renowned multinational coffee chain, made the decision to terminate its NFT rewards program.
In January, gaming retailer GameStop announced the closure of its NFT marketplace after scaling back its crypto services over the past two years.
More recently, X, under the ownership of Elon Musk, discontinued a feature that allowed premium users to use NFT images as their profile pictures.
Despite the declining interest in the NFT space, there has also been some positive news.
Last month, renowned Portuguese footballer Cristiano Ronaldo revealed his collaboration with Binance for the launch of his fourth NFT collection.
The collection, which was unveiled on May 29 on the Binance NFT Marketplace, pays homage to Ronaldo’s illustrious career, showcasing highlights from his football journey.
However, it’s worth noting that the football star has been embroiled in legal issues related to his involvement in NFT collection sales with Binance.
In November 2023, Ronaldo faced a class-action lawsuit in a United States district court in Florida.
The plaintiffs alleged that Ronaldo had actively participated in the offer and sale of unregistered securities in collaboration with Binance, and they argued that he should have been aware of Binance’s involvement in such activities.
Conclusion
In summary, while Pranksy’s optimism about the future of non-fungible tokens is notable given his status and experience, the data from CryptoSlam tells a more nuanced story.
The overall decline in trading volumes and falling floor prices of top collections highlight the challenges facing the market in 2024.
