A new research report from Nansen indicates that there may be a link between mint quantity and rate of return. The NFT market has been falling since last June. Some say the NFT is dead, while others try to avoid relating the term altogether. However, despite the crisis, Nansen Research has come up with some interesting statistics.
According to a report on Monday, 67% of newly minted Ethereum NFTs are profitable, meaning their floor price is still higher than the auction price. However, according to Nansen Research, new NFT coins have fallen in price since the summer, which may explain why the rate of return remains high. “New NFT amounts have been down since the summer, with May NFT amounts 65% lower than April AND the lowest since June 21,” the company wrote in a tweet.
As the chart above shows, NFT returns tend to be higher in the first days after the minting before falling in the days that follow. Ethereum NFT still dominates the industry in terms of trading volume. According to a Dune Analytics tip prepared by Hildobby, Ethereum NFT generated nearly $139 million in transaction volume in May 2023, excluding washout. This is a significant drop from the best month of this year with over $650 million reported in February. However, the data shows that the NFT market has recovered significantly since the start of the year compared to the decline recorded in the second half of 2022.
The NFT market recorded its best period in the first quarter of 2022, largely due to the launch of the NFT Market LookRare and X2Y2, albeit with significant volume due to washout trading activity. A significant bump seen in February of this year as a result of the ripple effect created by the emergence of conventional NFTs, seems to have revived the market. A report by Nansen indicates that 67% of newly created Ethereum NFTs are profitable. The report also highlights the decline in the number of new minted NFTs since the summer. The current mint count is the lowest since June 2021.
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