The NFT market is finally making mends, despite experiencing a steep decline starting June last year, as per data by Nansen Research. Although many critics declare NFTs are dead, with many distancing themselves from the term entirely, late statistics shed light on the profitability of newly minted Ethereum NFTs.
Nansen’s report, published on June 5, discloses that a remarkable 67% of freshly minted Ethereum NFTs are profiting due to the floor prices remaining higher than the initial launch price, presenting a positive ROI for NFT collectors and curators alike.
However, the data also highlights a downturn in newly NFT mints since the summer, likely contributing to profitability rates. Nansen Research took to Twitter to reveal how “New NFT mints have been on a decline since summer, with NFTs minted in May being 65% lower than that in April, AND the lowest it’s been since June ’21.” The graph demonstrates how NFT profits are typically higher in the first few days of minting, gradually decreasing as time passes:
67% of new NFT mints last month are profitable!
Sounds great, right? But that’s not the whole picture…
New NFT mints have been on a decline since summer, with NFTs minted in May being 65% lower than that in April, AND the lowest it’s been since June ’21 pic.twitter.com/sxPXgueGlq
— Nansen 🧭 (@nansen_ai) June 5, 2023
Ethereum’s Place in the NFT Sphere
Regardless of the slump in recent NFT mints, non-fungible Ethereum collectibles continue to prevail in the industry regarding trading volume, generating around $139 million in transaction volume last month, as per Dune Analytics data. Although, the data also implies that the NFT market has witnessed a significant rebound since the start of this year, exceeding the decline in the second half of 2022.
The first quarter of 2022 was the NFT market’s peak, driven by the debut of X2Y2 and LooksRare. Nevertheless, it’s essential to note that a considerable portion of the trading volume throughout this time is attributed to wash trading activity, whereby a trader concurrently buys and sells the same asset to create the illusion of genuine market activity. For more information, check out “The Highs and Lows of a Tumultuous Year“.
Another notable spike in the NFT world was in February 2023, attributed to the launch of the Ordinals protocol, aka Bitcoin NFTs, generating renewed interest among collectors and investors wanting to buy, sell and trade NFTs on the Bitcoin network for the first time.
Although the NFT market has undoubtedly been through a turbulent journey throughout the years, Nansen’s recent findings suggest that there’s still hope for profitability. As new NFT mints decline, the market may undergo a period of recalibration and consolidation. Yet, the industry’s ability and resilience to rebound in the face of challenges present how NFTs remain valuable.
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