The NFT art world was all the rage in 2020, 2021, and part of 2022. As I publicly predicted in April of 2021 that the NFT craze would last into 2022 but expected it to fizzle out from it's peak. Sure enough my prediction rang true for the most part and I even helped invest into an NFT meets Metaverse game that is publicly launching now that we are seeing the market starting to rebound back after the FTX scandal and blowups.
So here are some interesting stats that appeared in one of my newsletters that popped up today:
Bored Ape Yacht Club surged to $346.1 million dollars just under a year ago in January of this year. Since then the sales fallen off a proverbial cliff with sales volume under $32 million dollars in September & October but now we are seeing a small rebound in November with that number doubling to almost $64 million in November of 2022. So at one point it was down around 90%. We also are now contending with lawsuits from plaintiffs who bought crypto coins only because celebrities backed and promoted them. This will greatly affect future celebrity endorsements and the legal jargon that will go with these future promotions. So thats why you may hear about Madonna, Steph Curry, Tom Brady, and other well known celebrities getting sued for something they promoted that may have been legitimate at the time but well... Thats how business goes with fads and trends. If the people made money were they going to donate more money to the celebrities that promoted these coins?
Other big NFT Drops are for NBA Top Shot, which is created by the Crypto Kitties family over at Dapper Labs in British Columbia. They used licensing agreements with the NBA to sell sports trading card clips and highlights from the NBA. This was a common sense NFT that made more sense than the majority of GIFs going around. Dapper saw sales volume top $200 million 21 and 22 months ago. Last month however it fell to $2.1 million. Seems to be in line with the 90% range of volume dropping or 10% of the peak numbers. Topps MLB NFT collection had $8.5 million in sales volume 19 months ago but by JJune 2021 they couldnt break $1 million in sales trading volume. NFL has also had a similar issue with numbers peaking in September of this year at $14.3 million.
So overall the peak NFT volumes has dried up but the lovers and users and innovators will stick around and create value that at some point we will have increased values but may never ever see the trading volumes that we saw over the past 24 months. So follow the trend but dont get stuck in it.