Data Reveals NFT Markets’ Seller Overload and Imbalance: How to Restore Equilibrium

Non-Fungible Token Market Continues to See More Sellers Than Buyers in April

The non-fungible token (NFT) market has consistently had more sellers than buyers in April, according to recent data from analytics platform NFTGo. This trend has been evident throughout the month with not a single day where buyers have outnumbered sellers. This could indicate a lack of demand in the NFT market, which could be concerning for those planning to sell their NFTs soon.

Data Insights

The data from NFTGo reveals:

• On April 26, there were only 7,907 buyers, while 8,641 sellers were attempting to sell their NFTs.
• On April 19, the NFT market had its second-lowest point in the past twelve months, with only 5,893 buyers. This was a slight increase from the lowest recorded date in the past twelve months, which was on June 18, 2022, with 5,343 buyers.
• On April 5, there were 18,495 buyers, but there were also 36,423 sellers.
• The last recorded day when buyers exceeded sellers was on March 11, with 9,756 buyers and 9,754 sellers.

Community Reactions

The turbulent market conditions in the NFT market have sparked various community reactions on Twitter. Ovie Faruq, the co-founder of Canary Labs, stated in a tweet on April 26 that the NFT market is “not functioning” at the moment.

Previous NFT Market Decline

The NFT market experienced a decline on March 12, after the collapse of Silicon Valley Bank caused fear in traders. Before the bank’s collapse, NFT trading volumes were between $68 million to $74 million on March 10. However, on March 12, they fell to $36 million. This dip was accompanied by a 27.9% drop in daily NFT sales count between March 9 and March 11.

A March 20 CoinGecko report also revealed that the top six NFT marketplaces saw a rise in wash trading in February for the fourth month straight, with a total volume of $580 million. The report attributed the overall recovery of the NFT marketplace as the reason for the increase.