The marketplace where fans may buy, sell, and trade the ‘moments’ witnessed a 19% fall in sales from January, resulting in a drop in revenue for NBA Top Shot NFTs for the month of February.
February was a difficult month for cryptocurrency investors. Decentralized Exchanges (DEXs), digital asset prices, mining revenues, and sales revenues of numerous prominent NFT collections, like NBA Top Shot, all fell. During the second month of 2022, NBA Top Shot earned around $47.5 million.
Despite the fact that this figure appears to be impressive due to the number of non-fungible token projects that have been brought to the market in the last year, sales income was down in February. Sales fell by $11.4 million in February compared to January, a 19.35% reduction.
Because the NFT markets compete with others such as OpenSea, Axie Marketplace, Rarible, SuperRare, and Nifty Gateway, the decline in sales revenue during the last month could have a negative impact on NBA Top Shot.
According to the chart below, although the current sales revenue is better than May ($40 million), June ($45 million), July ($22 million), August ($37 million), September ($20 million), October ($40 million), November ($25 million), and December ($38 million), it is still far below the highs set in the first quarter of 2021.
NBA Top Shot sales income started off strong, totaling $40 million at the end of January 2021. Sales of NBA Top Shot moments reached a new all-time high in February, thanks to a surge in demand for cryptocurrencies and decentralized finance products, which finally led to an NFT buzz.
Total sales revenue in February 2021 was $224 million, a 452% increase from the previous month.
Sales revenue fell 7% to $208 million at the end of March. Because of the growing quantity of NBA players on the market, sales plummeted dramatically. According to basic economic principles, a high supply of NBA Top Shot moments resulted in a price decline. Transactions climbed dramatically from February, but average sales decreased, resulting in revenue of $82 million for the month of April 30, 2021, a 60% fall from March.
According to the figures presented, NBA Top Shot decreased by 78% year on year in February and by 82% from the yearly peak in February to the last day of 2021.
The reason that leads the sales decline
Increased availability, a dip in market prices for the moments, and a large loss in unique users all contributed to the drop in sales revenue for NBA Top Shot.
Following the large gains NFT provided early investors, the market was expanded to accommodate the finest moments of more than half of the NBA’s players. In an already saturated NFT market, this resulted in a saturated market.
In addition, the number of unique buyers has decreased year on year. The overall number of unique buyers by the end of February 2021 was 80,822, whereas the number of unique buyers by the end of February 2022 was 73,304, a 9% reduction.
When making our initial buy, we are attracted to pay extra for a thing we adore based on our own demands and preferences. NFTs represented a priceless work of art to early investors. Spending large quantities of money on items that are indivisible, indestructible, verifiable, and non-interoperable was well worth it.
Finally, falling prices for digital collectibles in the NBA Top Shot marketplace have contributed significantly to a drop in sales. The fortunes of February 2021 and February 2022 were very different.
TopShot #38,764 sold $208,000 in February 2021, setting an all-time high for NBA Top Shot. Top Shot #114000 ($125,000), Top Shot #162045 ($100,000), Top Shot #717513 ($100,000), Top Shot #6985 ($99,000), Top Shot #673595 ($99,990), and Top Shot #31926 ($95,000) were among the other sales that helped drive sales income.
In February 2022, the NBA recorded a month high of Top Shot #33025494 ($8,880). Top Shot #28696107 ($8,800), Top Shot #174746 ($8,340), Top Shot #29449507 ($8,190), and Top Shot #166577 ($8,000) were among those who contributed to sales revenue.
The February 2022 monthly high ($208,000) was 2,242 percent greater than the February 2021 monthly high. Despite the fact that total transactions in February 2022 (1,716,656) were a 28 percent reduction from total transactions in February 2021, sales statistics in 2022 are nowhere near those in 2021.
As of this writing, NBA Top Shot’s sales revenue had surpassed $3 million, and this figure is expected to climb as the NBA playoffs and finals follow the regular season into June and the rest of 2022.
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