NFT Sales Hit $95.42M as Animoca Brands’ Valuation Tumbles

Sales in the non-fungible token (NFT) market spiked by 6.29%, reaching $95.42 million over the past seven days. Conversely, the NFT market noted a drop in participants between August 3 and 10, as sellers shrank by 77.25% while buyers saw an 86.34% decline.

NFT Market Expands Consistently Despite Volatility

The NFT market recorded $95.42 million in total revenue, with Ethereum-based NFTs leading the pack with $32.46 million. Similarly, Solana NFTs experienced a notable surge, with sales reaching $19.52 million, representing an 11.08% gain over the prior week.

However, Bitcoin NFT sales suffered a 10.03% decrease despite generating $14.69 million. This data demonstrates how NFTs continue to be popular on several blockchain platforms.

Ethereum has consistently led the market, and its robust user base suggests sustained confidence in its ecosystem. On the other hand, Solana’s remarkable expansion suggests that NFT fans are also increasingly interested in its ecosystem. The recent drop in Bitcoin NFT sales indicates its struggles in the NFT sector despite its established presence in the cryptocurrency industry.

Top Sales and NFT Collection Leaders

Mythos’ Dmarket stood out as the top collection among the NFTs, maintaining its status as the leader from the previous week. Dmarket noted a 334.87% rise in sales, totaling $7.22 million.

This spike demonstrates the collection’s increasing popularity and strong product demand. Guild of Guardians by Immutable X ranked with sales of $3.6 million and a rise of 7.28%. Sorare NFTs ranked a distant third, selling $3.34 million as sales decreased by 11.39%.

The week’s most expensive sales further proved the market’s unpredictable behavior. The sale of Autoglyphs #172, which brought in a total of $207,500, came in first place.

After that, an Arbitrum NFT with GUSD Locked sold for $123,840, and a BNB Lockndeal NFT sold for $136,959. These high-value transactions illuminate NFT collectors’ diverse interests and willingness to invest in valuable digital assets.

Animoca Brands Records a Sharp Reduction in Valuation

Meanwhile, one of the biggest names in the NFT and cryptocurrency market, Animoca Brands, saw a significant decline in its valuation. The company’s worth has fallen by over 75% in just two years.

Animoca was valued at $5.9 billion in July 2022, but subsequent secondary share activity has decreased its valuation to $1.5 billion. This decline aligns with what’s obtainable in the broader NFT industry, where trade volumes have plummeted from $6 billion to $430 million.

The sharp decline in Animoca Brands’ valuation reminds us of the NFT market’s unpredictability. After the 2022 crisis, the cryptocurrency market as a whole began to recover, but the NFT sector has not recovered as swiftly. Companies like Animoca, with large investments in NFTs, have been significantly impacted by the sharp decline in NFT trading volumes.

Managing the Volatile Market

Accordingly, Animoca Brands prioritizes strategic partnerships to manage the volatile market despite financial constraints. The latest is a collaboration with the luxury vehicle maker Lamborghini.

The two firms seek to improve brand engagement through NFTs by providing exclusive experiences catered to Lamborghini lovers. The partnership reflects Animoca’s dedication to expanding the possibilities that NFTs can provide and its approach to remaining relevant in this industry.

Furthermore, Animoca Brands is contemplating an initial public offering (IPO) as part of its long-term approach. However, Yat Siu, the company’s executive chairman, stated that there’s a difference between Animoca’s market valuation and its net assets worth.

Siu believes that market perception may be a factor in this disparity. By going public, Animoca seeks to bring its market value closer to the value of its physical assets. Thus, the company can give investors a more accurate valuation.

Additionally, the company could gain access to additional finance to support its creative project and improve its market positioning. Nevertheless, the company is still a leading participant in the industry even as it makes changes to adapt to the shifting NFT and cryptocurrency markets through various means, such as the proposed IPO.