02 June 2023 09:05, UTC
Reading time: ~3 m
According to data analyzed by BitcoinCasinos.com, the forecast for long-term NFT markets is anything but positive.
In fact, these are estimated to reach a value of $2.7 billion by 2025: less than half the previous forecast. Below are all the details.
Some predictions about the NFT market
After a positive start in 2023 and several good months, the once booming NFT market has encountered new challenges and recorded weak sales data, disappointing growth projections for the coming years.
In fact, although revenues are growing 80% year-on-year, they remain significantly below pre-2022 forecasts.
As is well known, the cryptocurrency winter has greatly reduced investor interest in NFTs, with the number and value of sales much lower than in the previous year.
In addition, the weak performance of NFTs in recent months has also lowered optimistic prospects for future market growth. We see that, in 2021, NFT markets generated $810 million in revenue, according to Statista data.
This figure increased to $890 million last year, despite 2022 being one of the most difficult years in the history of the cryptocurrency market.
In November 2022, Statista’s forecast indicated a remarkable recovery of the entire market, with an estimated value of $3.68 billion in 2023 and over $6.2 billion by 2025.
However, six months later, Statista’s forecasts have been significantly scaled back. Indeed, according to the latest data from April, the Non-Fungible Token market is expected to generate about $1.6 billion this year, which is 56% less than the previous forecast.
It is expected to grow by 70% over the next four years, reaching $2.75 billion in 2025: a much lower figure than the $6.2 billion previously projected.
Sellers outpace buyers in Non-Fungible Token markets
According to the data, we see that user growth projections are also much less optimistic.
In November, Statista projected that the number of people trading in NFT markets would reach 50.3 million this year and increase to nearly 60 million by 2025.
However, now these figures have been reduced to 13.9 million in 2023 and 18.3 million in 2025.
The latest market forecasts were released following troubling data on the number of active NFT wallets and the total number of buyers and sellers in this market.
According to NFTGo data, as of 23 May there were 6,054 sellers and 5,056 buyers in the NFT market.
This data raises concerns because a large number of sellers indicates an oversupply relative to demand, which could push many NFT owners to reduce prices, leading to a further decline in the market value of NFTs.
The total market capitalization of NFTs amounted to about $7.71 billion at the time of writing, which is a 42% decrease from the same month of the previous year.
Meanwhile, total NFT sales volume decreased 68% year-on-year to $9.9 billion.
Investments in major NFT projects lose 95% of their value in Ether
Investments in major NFT projects, such as Doodles, Invisible Friends, Moonbirds and Goblintown, suffered losses of up to 95% of their value in Ether (ETH).
In addition, the value of high-quality NFT collections, known as blue-chips, also declined by more than 40% on average.
The biggest NFTs of 2022 have had a TOUGH 2023.
23 ETH 📉 2.3 ETH
8 ETH 📉 1.15 ETH
32 ETH 📉 2 ETH
6 ETH 📉 .26 ETH pic.twitter.com/5Fr9BMhmkg
— HashBastards NFTs 🤑 (@HashBastardsNFT) May 21, 2023
Not only that, data provided by NFTGo show that the blue-chip index has fallen to 7.446 ETH, down from the annual peak of 12.394 ETH reached in July 2022.
However, despite this downward trend, not all investors in the NFT sector have been discouraged.
In fact, while some anticipate further prolonged NFT price depreciations, other investors believe that now is the right time to take action, anticipating a possible recovery in the future.
Read the full article here