NFT Market Report Q2 2022: A massive 25% USD Traded Drop

As we announced in the first quarter of 2022, the NFT (and crypto) market was not in great shape especially since the global geopolitical context has become more complex. For this second quarter, an unfortunate trend has been confirmed and volumes no longer look like last year’s experience..!

Quarterly NFT Market Report Q2 2022 – Summary

With 55 pages dedicated to the analysis of the NFT market for the second quarter of 2022, here is the summary of the different chapters that you can find there:

1 – The fundamentals

• What is an NFT?
• The data used for this report
• Legal disclaimer

2 – A look back at Q2

3 – Overall performance

• Q2 2022 Performance

4 – Detailed performance

• Search volume
• Performance by segment
• Market distribution by project
• Primary and Secondary Market
• Average NFT Price Evolution
• Active Wallets
• Supply & Liquidity

5 – The interview of the quarter

• John Karp from the Non Fungible Conference and NFT Factory

6 – Profits & losses on the market

• Global performance of NFT Trading
• Profit & Loss per segment over time
• Most profitable projects
• More profitables sales

7 – Focus by segment

• Crypto Art
• Collectibles
• Gaming
• Metaverses
• Utilities
• The situation by segment

8 – General conclusions

This article will introduce you to different metrics but we invite you to download the full report for free to have the most detailed overview possible!

Q2 Global NFT Performance

Most indicators are down in the second quarter of 2022, without much surprise given the global economic context. The main metrics are down about 25%, which is a relatively modest decline compared to cryptocurrency trends.

Note that also the average price of NFTs experienced a very slight drop of only 6% while crypto currencies were almost divided by 3 during the period.

NFT Trading: A 25% USD Traded Drop

Let’s start with the USD traded volume. The NFT market has seen a massive drop of about 25% in terms of USD traded between Q1 and Q2 2022 with a global volume of about US$8 billion in Q2 2022.

It’s not just the USD volume traded that has fallen. This is also the case for the number of buyers and sellers as well as the number of sales. These decreases come mainly from collectibles that have lost interest since the beginning of the year except for the “blue chip” collections.

CryptoPunks, Meebits and the Bored Ape Yacht Club family alone account for 30% of the USD volume traded in the global NFT market. It would therefore seem that a centralization of the market is taking place around the projects owned by Yuga Labs for this first quarter of 2022.

Q2 NFT Trading Profit & Loss

With the fall in the price of crypto and the decline in NFT market volumes, making profits has become harder during the second quarter of 2022. Profit at resell decreased by 46% during the period, for a total loss that increased by 23% (US$1.8 billion profit for US$1.4 billion loss).

NFT trading records a net profit of US$460M over Q2 2022, a significant decrease compared to Q1 2022 (US$2,347M). 

The Collectibles segment is paradoxically the one with the highest resale loss rate, peaking at more than $100 million per week, but which at the same time still has the most profitable sales of the quarter.

Less Liquidity and More Building

Very few new NFTs have been issued this quarter, with a global supply growth of only 4%. The liquidity has also considerably diminished over all segments. Secondary market remains predominant with almost 80% of the volume of USD traded, in the meantime, Primary market has constantly decreased over the period.

It is mainly around the Ethereum Name Service (ENS) that the volume has been in the Utilities sector. The decentralized domain name project has announced new updates for its product. But we have also seen a lot of speculation around three-character names.

Driven by OtherSide and the continuity of the hype launched by Meta at the end of last year, metaverse projects also seem to be multiplying. 

Only utility NFTs and metaverses are showing growing liquidity despite a bear market. 

NFTs Are Not Buried Yet

The least we can say is that the market has changed dramatically in just one quarter. NFTs are no longer in the spotlight, the turmoil seems to have died down…for now. Let’s take this opportunity to refocus on what really brings value over time.

Profit is made during Bull Markets, but it is usually during the Bear Markets where real value is built.

If you want to know more about our prediction for the next quarter and more in-depth analysis, download our free quarterly Q2 report!