NFT Market Facing Persistent Selling Pressure
According to the data provided by the analytics platform NFTGo during the month of April, the market for nonfungible tokens (NFTs) has been regularly seeing a greater amount of selling pressure than purchasing. There were only 7,907 purchasers on April 26, although there were 8,641 vendors trying to sell their NFTs. On April 19, there were just 5,893 purchasers, which led to the market reaching its second-lowest point in the preceding year.
There were 18,495 buyers in the market on April 5, but there were also 36,423 sellers, and there hasn’t been a single day in April in which the number of buyers has outweighed the number of sellers. Even with the rise on April 5 to 18,495 buyers, the market still had 36,423 sellers. Those who have their sights set on selling their NFTs in the near future could find this consistent selling pressure to be reason for alarm.
NFT trade volumes on March 10 were between $68 million and $74 million before the collapse of the bank; nevertheless, they dropped to $36 million on March 12. In addition, between March 9 and March 11, there was a reduction of 27.9% in the number of daily sales of non-fungible tokens (NFTs).
Twitter users have expressed their opinions on a wide variety of topics in response to the volatile circumstances in the NFT market. The co-founder of Canary Labs, Ovie Faruq, said in a tweet on April 26 that the NFT market is “not functioning” at the present time.
The amount of wash trading on the top six NFT markets increased to a total of $580 million in February, according to a research that was published by CoinGecko on March 20. This was the fourth consecutive month that wash trading increased. According to the findings of the research, the volume of the NFT marketplace increased by 126% from the previous month’s level of $250 million. The rise may be attributed to the general recovery of the market for non-traditional financial assets.
Despite the fact that the NFT market has been under pressure to sell during the month of April, it is important to keep in mind that the NFT market is still a relatively young and emerging business, and it is not unusual for the market to be volatile. Despite this, the consistent selling pressure may indicate to sellers that they need to change their pricing strategy or explore the possibility of hanging onto their NFTs for extended periods of time.
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