Sellers dominate NFT markets

CoinGecko said on March 20 that wash trading on the top six NFT exchanges climbed for the fourth month in a row in February, totaling $580M.

Sellers dominate NFT markets
Sellers dominate NFT markets

The market for nonfungible tokens (NFTs) has consistently seen more sellers than purchasers throughout April, according to recent data.

According to data from the analytics platform NFTGo, on April 26, there were only 7,907 purchasers, while 8,641 people attempted to sell their NFTs.

The NFT market reached its second lowest point in the previous twelve months on April 19, with 5,893 purchasers—a minor increase from the lowest recorded date in the previous twelve months, June 18, 2022, with 5,343 buyers.

While there were more purchasers (18,495) on the market on April 5, there were also 36,423 sellers.

According to the data, there has not been a single day in April in which the number of buyers exceeded the number of sellers on the NFT market, indicating a potential dearth of demand that could be concerning for those intending to sell their NFT shortly.

The last day purchasers outnumbered vendors was March 11, when 9,756 buyers outnumbered 9,744 sellers.

Graph showing the total number of daily buyers, sellers and holders on the NFT market. Source: NFTGo

The tumultuous market conditions have elicited diverse responses from the Twitter community.

Canary Labs co-founder Ovie Faruq tweeted on April 26 that the NFT market is “not functioning” at present.

According to previous reports, the NFT market experienced a decline on March 12 following the collapse of Silicon Valley Bank, which caused traders to experience dread.

Before the bank’s failure, NFT trading volumes fluctuated between $68 million and $74 million on March 10, but on March 12, they dropped to $36 million.

The decline was mirrored by a 27.9% decline in daily NFT sales from March 9 to March 11.

According to a report published on March 20 by CoinGecko, wash trading on the top six NFT exchanges increased for the fourth consecutive month in February, with a total volume of $580 million.

The market volume increased by 126% from the previous month’s level of $250 million, with the report attributing the increase to the overall recovery of the NFT market.