Main topic: Decline in NFT sales and the need for new opportunities in the sector.
Key points:
- NFT sales in July totaled $495.6 million, down 23% from June.
- This marks the fifth consecutive month of declining NFT sales since February.
- The average sale in July was just $47, indicating less interest in high-value NFTs.
- Transaction levels remain high, indicating a growing prevalence of low-barrier NFT sales.
- Ethereum, Bitcoin, and Solana were the top blockchains for NFT sales in the past 30 days.
- The decline in NFT sales highlights the need for players and builders in the sector to find new growth opportunities.
Recur, an NFT platform that featured collectibles from popular brands, is shutting down due to challenges and changes in the business landscape, causing a decline in the value of its offerings. Users can still access their NFTs through IPFS, but the company will disable deposits and gradually take its websites offline. This closure follows a trend in the NFT community, as other platforms have also shut down recently.
Main Topic: The shutdown of NFT startup Recur
Key Points:
1. Recur, a startup that helps businesses create and manage NFT collections, announced its shutdown.
2. The company had raised a $50 million Series A round at a $333 million valuation in September 2021.
3. Recur had prominent investors, including metaverse investment firm Digital, Steve Cohen's family office, and musicians Jason Derulo and David Choi.
The nonfungible token (NFT) market has experienced a significant decline in value, but experts believe that NFTs still have potential for growth and innovation in the future, particularly if they can offer tangible benefits and utility beyond digital art, such as asset-backed NFTs and membership-based models.
Mainstream media outlet Rolling Stone has claimed that 95% of nonfungible tokens (NFTs) have no value, according to a study by DappGambl, although some community members believe that the narrative may change in the future.
The majority of NFT collections, representing 95% of people holding NFTs, are now worthless investments, with only 21% of NFT collections being sold, indicating a shrinking demand and a lack of genuine value in the NFT market. Furthermore, the energy consumed by minting NFTs has resulted in significant carbon emissions, raising concerns about their environmental impact.
As many as 95 percent of non-fungible tokens (NFTs) created during the cryptocurrency bull run are now worthless, according to a report, highlighting the decline in NFT valuation as the cryptocurrency craze subsided.
The NFT bubble has burst as prices and trading volumes have plummeted, leaving many NFTs worthless and their future prospects bleak.
An NFT from the CrypToadz collection was sold for $1.6 million, raising questions about the high price and the involvement of the Ethereum coin mixing service Tornado Cash, known for its use in suspicious fund transactions.
The recent collapse in the price of NFTs is not a sign of distress but rather a sign of maturation in the technology, as market adjustments and a shift towards genuine utility and innovation are expected to stabilize the market, according to Web3 executives.
