The market is facing an imbalance in April 2023, with sellers consistently dominating the scene. Here we will analyze the factors contributing to this disparity and its potential impact on the market. We also explore the future prospects of the NFT sector amidst these challenges.
Non-fungible tokens (NFTs) emerged as a significant innovation in blockchain technology, following cryptocurrencies. The NFT market experienced a boom in 2021, coinciding with the contemporary crypto market rally. However, as the cryptocurrency market declined the following year, the digital art space began losing its luster. Despite intermittent highs, recent statistics indicate a lack of optimism in the NFT sector.
Dissecting NFTs
Throughout April 2023, an imbalance in the non-fungible token (NFT) market has been observed, with sellers consistently outnumbering buyers, as per data from the analytics platform NFTGo.
On April 26, the platform recorded 7,907 buyers compared to 8,641 sellers. This followed a low point on April 19, when only 5,893 buyers were active, slightly more than the lowest number of buyers recorded in the past year on June 18, 2022, at 5,343.
Even on April 5, when the market saw 18,495 buyers, a significantly larger number of sellers, 36,423, were present.
The data indicates that during the entire month of April, there has not been a single day when buyers outnumbered sellers in the NFT market, suggesting a potential lack of demand that could be worrying for those intending to sell their NFTs in the near future.