consumer trade the boom has deflated, pushing unicorns and recently public companies into defensive modes. The decline in consumer business activity also extends to new asset classes, according to the data, such as non-fungible tokens (NFTs).
By The Block’s data arm, weekly NFT sales fell just over 70%, from a high of nearly a million units in the third week of 2022 to just over a quarter of a million in the third week of 2022. during the most recent week of the dataset, which started in the last days of May. The decline in NFT sales volume isn’t new, but it has become more pronounced in recent weeks, adding new weight to the argument that the crypto or web3 market is in a period of correction – this which some describe as a “winter”.
However, the decline in NFT sales does not come amid a freeze in recent funding rounds for NFT-focused companies. A quick scan of TechCrunch headlines actually shows the opposite. Sure, Bored Ape’s Yuga Labs raised a $450 million round from a16z at a lofty $4 billion valuation in March, but there’s been a lot of activity since that event.
In April, Glow Labs raised $4.15 million in seed capital for its NFT-related project that wants to help “creators deploy a smart contract with no coding required in seconds, allowing them to create loyalty offers customized without as much hassle,” as we wrote. In early May, Americana raised $6.9 million for its project to help “brands and designers transform physical objects such as streetwear, collectables, cars and works of art in NFT”.
The list of recent NFT-related transactions continues. Zora Labs raised $50 million in May; its protocol, TechCrunch said at the time, “allows artists and developers to create NFT marketplaces and collections.” Less than a week later, Arianee announced that it had raised $21 million for its work supporting “digital certificates of ownership and authenticity on behalf of partner brands.” And in late May, Ayoken raised $1.4 million for its creator-focused NFT Marketplace.
All of these funding events are based on the growth of the NFT market. TechCrunch cited data in April, for example, that the NFT market reaches $41 billion in 2021, and another source said around the same time that the market could double this year. Maybe, but it doesn’t look like this: