NFT Market Report Q3 2022: Build Market is Here.

We’ve seen weak signals indicating a promising and stable direction for the NFT industry amidst the Bear Market after a massive drop in USD traded volume of 25% over the last quarter, this indicator fell again by 77% compared to Q2 2022. Was it merely a passing fad in the end? Or is the ecosystem continuing to silently preserve and build? Discover the answers in our report..

Quarterly NFT Market Report Q3 2022 – Summary

With 51 pages dedicated to the analysis of the NFT market for the third quarter of 2022, here is the summary of the different chapters:

1 – The Fundamentals

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

2 – A Look Back at Q3

3 – Overall Performance

• Q3 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.

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

Q3 2022 NFT Market Performance: Building the Web3 Industry Despite Low Volumes. 

The most notable indicator of global NFT statistics is that of the USD traded volume. Compared to the second quarter, it fell 77% to US$1.6 billion traded on the market from US$7.3 billion in Q2 2022.

It is interesting, however, that other equally important indicators have not fallen as much. For example, the number of sales fell very little (-5%) as well as that of active wallets (-17%). With respectively a volume of US$10.9 million in sales and US$1.1 million in wallets, activity is still significant during this quarter.

Another important element: the number of smart contracts also continued to increase by 9% to more than 17K showing that initiatives continue to be launched by project creators.

The NFT Market is Reshaping and Becoming Less Centralized

During this third quarter, one of the biggest changes was the reconstitution of the market. For example, Yuga Labs’ collections (Bored Apes Yacht Club, CryptoPunks, Otherside and Meebits) accounted for just over 30% in Q2. For this Q3, they represented 17% of the USD volume traded.

Despite a bearish market, we observe a change in the actors entering the NFT industry with well-established brands (Tiffany, Starbucks, Microsoft, MTV, the city of Shanghai, Ticketmaster) from all horizons launching NFT initiatives, confirming that the NFT market is quietly and slowly reaching a mainstream audience.

The market has therefore reshaped itself by leaving more room for other Collectibles type projects such as Doodles, Moonbirds or Nouns but also the art and utility segments have made a breakthrough in the top 5 projects that generated the most USD traded volume. On one hand, Art Blocks has again aroused interest but on the other hand, a strong euphoria has also manifested itself around Ethereum Name Service.

Several categories began to form, mainly with ENS names consisting of 3 to 4 digits.

NFT Collectibles Are Still Dominant, Art and Utilities Are Getting Stronger 

With over US$537 million in trading volume for the third quarter of 2022, the collectible segment represents 60% of the market share. With a 52% drop in active wallets, this means wallets that have collected Collectible NFTs have preferred to keep their NFT rather than sell it at a loss.

Meanwhile, the Art (14%) and Utilities (13%) segments experienced the most volume during this quarter. Only the Utility segment is standing out and showing a promising future with a volume of assets increasing (+44%) and liquidity accelerating (+5%)

NFT Community Remains Active and Favors Healthier Trading Behaviors 

Active Wallets: Number of wallets that bought or sold at least one NFT during the period. The number of active wallets allows you to have an estimate of the activity that took place on-chain (buying, selling, interacting with a smart contract) but it is important to keep in mind that a user can have several wallets. To find out the number of off-chain users, we recommend you ask project creators to share their statistics.

Looking at active wallets, the distribution of on-chain activity is much more diverse than the USD traded volume. The segment with the least active wallets is the Metaverse with a bit more than 17K wallets (-74% compared to Q2). That said, it is also the segment that has seen its average ownership increase by 375%.

This trend is not only related to the metaverse segment, we also find it in art, collectibles, gaming and utilities. NFT collectors are fewer in number but keep their assets longer. Perhaps a longer investment perspective?

‘This New Generation of NFTs Will Either Be Useful or Won’t Be..’

This quote from our co-founder Gauthier Zuppinger concludes the state of the NFT market for this third quarter of 2022. Indeed, the main expectation of buyers today is to find a real utility before investing. Collections with no real potential created last year are no longer traded and investments in new collections are more cautious.

The NFT community is therefore larger but has also become more demanding. To understand more precisely the NFT market of this Q3 2022, we invite you to download your version of the report and follow us on our different networks.

We would also like to warmly thank our sponsors who supported us in writing this report: