consumer trade the boom has subsided, pushing both unicorns and newly public companies into defensive regimes. The decline in consumer trading activity is also spilling over into new asset categories such as non-fungible tokens (NFTs), according to the data.
Per Block data hand, weekly NFT sales are down just over 70% from a high of nearly 1 million units in the third week of 2022 to just over a quarter of a million in the most recent week in the dataset, which began in the last days of May. . The decline in NFT sales is not new, but it has intensified in recent weeks, adding weight to the argument that the crypto or web3 market is in a correction period – what some are calling “winter”.
However, the decline in NFT sales does not come amid the suspension of recent funding rounds for NFT-focused companies. A quick look at the TechCrunch headlines actually shows otherwise. Of course, Yuga Labs aka Bored Ape raises $450M round off a16z at a high $4 billion valuation in March, but there has been a lot of activity since that event.
In April, Glow Labs Raises $4.15M in Seed Capital for their NFT-related project, which wants to help “creators deploy a smart contract without the need for coding in seconds, allowing them to create customized loyalty offers without much hassle,” as we wrote. In early May, Americana raised $6.9 million. for his plans to help “brands and creators to turn physical items such as streetwear, collectibles, cars and art into NFTs.”
The list of recent NFT-related deals goes on. Zora Labs raised $50 million in May.; its protocol, TechCrunch stated at the time, “allows artists and developers to create NFT marketplaces and collections.” Less than a week later Ariani announced that it has raised $21 million for its work to help “digital certificates of ownership and authenticity on behalf of partner brands.” And at the end of May Ayoken raised $1.4 million for its creator-focused NFT marketplace.
All of these funding developments are based on the growth of the NFT market. For example, TechCrunch cited April data that the NFT market hit $41 billion in 2021, and another source said around the same time that the market could double this year. Possibly, but it doesn’t look like this:
Credit: techcrunch.com /