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Crypto Winter Sees Hyper-Centralization of Blue-Chip NFT Collections: Report
For the first time since last June, the market failed to hit $1 billion in trades. NFT users have now resorted to liquidating their investments, anticipating better market prospects.
A new report by DappRadar, shared with CryptoPotato, suggests that this trend of “trading blocking” will continue till the crypto winter has passed. But during this turmoil, Yuga Labs has managed to retain its hold over the space.
In fact, four projects owned by the NFT giant: CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, and Otherdeed for OtherSide, alone represented over $160 million traded in July.
Yuga Labs had a little over 20% of the entire NFT market during the total trading volume of July 2022.
DappRadar’s latest blockchain industry report highlighted the hyper-centralization of activity in blue-chip NFT collections that continue to retain most of their value.
The document showed that the NFT market is currently contracting, with its trading volumes decreasing by 25% MoM.
Additionally, the number of traders has also declined by 8% MoM despite registering modest gains of 40% from July 2021.
Despite the entry of new competitors, OpenSea remains the dominant marketplace.
Its market share, however, has fallen from 84% in May to the current 58.6% measured in July. The diminishing volume is not surprising as the NFT market matures.
x2y2, Solana’s Magic Eden, and Ethereum’s Foundation are some of the rivals witnessing increased volume.
According to DappRadar, these platforms are not only focusing on surviving the bear market but are also keen on maintaining or increasing their market share.
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