Gamestop’s NFT trade volume and fees earned convince NFT enthusiasts that the digital collectible hype may have normalized.
After months of teasing and hype, the highly anticipated Gamestop NFT marketplace launched in beta early this week. The marketplace opened with about 54,000 unique NFTs, all sorted into one of over 250 distinct collections.
Data available on the marketplace showed that within the first 24 hours, the total traded volume was 1,835ETH, approximately $1.98 million. With Gamestop charging a 2.25% marketplace fee, it earned about $45,000 from the total volume. The traded volume comprised initial sales by the NFT creators and subsequent sales by secondhand buyers.
MetaBoy, a bundle of 10,000 animated GIFs, is currently the most popular collection on the marketplace and represents 25% of GameStop’s NFT trade volume. The top four NFT collections have accounted for over 52% of all trade on the service.
On the other hand, there haven’t been any exchanges on the GameStop platform for 48 collections representing 317 different NFTs. The average trading volume on the marketplace is currently 0.9 ETH ($970).
Gamestop’s Meager Earnings A Reflection Of The NFT Downturn
Gamestop’s $45,000 earnings are meager for a company its size. However, it indicates that NFTs have lost their steam amidst the general malaise in the crypto market.
OpenSea’s traded volume Chart. Source: DappRadar
For comparison, in January, OpenSea, the largest NFT marketplace, saw daily transactions of about $150 million. However, data from DappRadar shows that its volume now is $12 million and an almost 90% drop off year-to-date.
The decline in volume has come amidst the falling prices within the crypto market as investors become more risk averse. This has seen them move away from highly speculative assets as they try to hedge their bets and minimise losses.
However, several NFT enthusiasts believe that the current market situation may not necessarily be bad. Instead, it indicates that the digital collectible space may be experiencing its new normal. In the r/crypto currency subreddit, one user highlighted how Gamestop’s marketplace is not geared towards speculation. He argued that an NFT marketplace should be where collectibles are purchased to enhance an experience or for a game.
Another user shared similar sentiments, revealing that low gas fees and the emergence of Layer-2s would enhance the NFT experience. Thereby ensuring the implementation of NFTs for more practical uses.
NFTs May Not Be Dead Yet
Several indicators show otherwise despite the fall in enthusiasm over NFT and the consensus supporting that sentiment. Recently, amidst the malaise, there was a significant surge in the sale of Ethereum Name Service (ENS) domains.
Following an anonymous purchase of the 0000.eth domain name for 300ETH ($316,862), there has been a demand surge for ENS domains. Similarly, a $2.66M sale for CryptoPunk 4464 has seen volumes increase 278% this week.
Overall, the market in the doldrums has not prevented the spike in volume for individual collections or other digital collectibles. However, it is interesting that the NFT space is evolving to accommodate speculation and digital collections.
Do you think the NFT space is normalizing with the fall in trading volume and moving away from pure speculation? Let us know your thoughts in the comments below.
Chris is a crypto enthusiast and a firm believer in the blockchain’s ability to create a new financial paradigm. Through writing, Chris hopes to expose the intricacies of this disruptive technology and how it is beneficial to Africans and developing countries. He aims to give readers a rational and unbiased outlook of the industry by equipping them with the necessary information to make enlightened investment decisions.
