According to a report from NFTGo, a popular analytics portal, the non-fungible token (NFT) market has seen more sellers than buyers for the entire month of April 2023. The report, released on April 26, 2023, reveals that as of that date, only 7,907 buyers were recorded, while 8,641 people were trying to sell their NFTs.
The report’s data showed that there was not a single day in April when there were more buyers than sellers, likely indicating a lack of demand, which could pose a challenge for sellers looking to sell their NFTs in the near future.
On April 5, 2023, there were 36,423 sellers in the market, along with 18,495 buyers. The report noted that the last recorded instance of more buyers than sellers was on March 11, 2023, when there were 9,756 buyers and 9,754 sellers. The market hit its second-lowest point of the year on April 19, 2023, with only 5,893 purchasers. The lowest recorded date in the past year was June 18, 2022, when only 5,343 buyers were present in the market.
Co-founder of Canary Labs, Ovie Faruq, tweeted in response to the report that the NFT market was; “not functioning at the moment.”
For the last year, daily NFT traders ranged from 20-60k.
In the last few days it dropped to 7k
This market is not functioning atm. pic.twitter.com/akqKuWHmxr
— Mando (@rektmando) April 26, 2023
The decline in the NFT market can be linked to the panic among traders following the failure of Silicon Valley Bank, according to a report from DappRadar, a data aggregation platform. Before the bank failed, NFT trade volumes fluctuated between $68 million and $74 million on March 10, 2023. However, on March 12, 2023, they dropped to $36 million. The daily NFT sales figure also fell by 27.9% between March 9, 2023, and March 11, 2023.
In a poll conducted by CoinGecko and Blockchain Research Lab on April 10, 2023, over 75% of Bitcoin users reported owning at least one NFT. Interestingly, even companies from traditional industries are gathering their own NFT collections, despite criticism from detractors who consider NFTs expensive digital arts.
A CoinGecko analysis released on March 20, 2023, showed that the top six NFT marketplaces experienced an increase in wash trading for the fourth consecutive month, with a total volume of $580 million in February. The report attributed the surge to the general rebound of the NFT sector, marking a 126% increase over the previous month’s volume of $250 million.
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