NFT revenue is expected to grow 6% to reach $21.1 million by the end of the third quarter, despite a 75% drop in overall transaction volume, according to an update from DappRadar. report.
The number of unique NFT traders increased by 36% compared to the third quarter of 2021, despite price crashes and market size contraction during the coldest winter in cryptocurrency history.
The report states:
“Given the number of brands starting to implement NFTs and the number of unique traders (2.2 million) this quarter, the NFT market growth will continue to grow in 2023, but the road ahead will be challenging.
Ethereum loses, Immutable X wins
Given its dominance in sales numbers in the NFT market, Ethereum (ETH) appears to have the largest share at 26.2%.
However, Ethereum took a big hit in Q3 2022. The top 100 Ethereum NFT projects collectively lost 44% of his market capitalization, shrinking to $19 billion compared to the previous quarter.
Immutable X (IMX) NFTs recorded growth in the third quarter. According to the report, its transaction volume is up 87% from the previous quarter, demonstrating the potential of Web3 games.
Fashion NFTs dominate while gaming and sports decline
The report also analyzed the performance of fashion, gaming, and sports NFTs separately, finding that all recorded declines in Q3 2022.
Gaming NFTs fell sharply from over $1 million in Q1 to $71 million in Q3 2022.
Despite a significant drop, the blockchain gaming market is still worth over $8.6 billion. The sector also registered a significant expansion in August 2022, recording approximately 847,000 unique active wallets (UAW) per day.
The sports NFT market is expected to double to $2.6 billion in 2022, according to a study earlier this month.
According to the report, the sports NFT market generated $128 million in deals in the first quarter and recovered $4 million in sales. Transaction volume was down 63% and sales were down 54% in the second quarter.
The third quarter of this year recorded additional declines of 61% and 47% in transaction volume and sales, respectively.
Fashion NFTs also recorded a decline in the third quarter. The volume in the second quarter was about $2 million, and in the second quarter he was at $16 million.
The report claims that fashion NFTs are the strongest segment of the NFT market. Tiffany & Co NFT started at a mint price of 30 ETH and he sold out in 20 minutes, generating $12.5 million in revenue.