nft sales decline in September
Sales declined in September, causing further damage to the nft sector. Sales for the month totaled $296 million overall, a notable 20% decline from August's $373 million, according to data from CryptoSlam. It is worrying because this loss marks an 81% drop from the peak sales figure of $1.6 billion reached in March 2024. Monthly sales volume fell below $109 million, or less than $300 million. dollars, for the first time since January 2021.
nft transactions also saw a notable drop in addition to this loss of revenue. Only 4.9 million transactions were carried out in September, 32% less than the 7.3 million in August. This pattern suggests that many collectors and investors are evaluating their plans and acting more cautiously in the market.
Source: CryptoSlam
The average value of nft transactions unexpectedly increased by 18%, from $50.71 in August to $60 in September. This increase indicates that fewer nfts are being sold overall, but those that are are selling for more money. These nfts in particular may appeal to collectors who anticipate a large increase in value over time.
The nft market crash is simultaneously being monitored by the US Securities and Exchange Commission (SEC). OpenSea CEO Devin Finzer stated on August 28 that the company received a notice from Wells from the SEC. This warning drew attention to the regulatory challenges facing the nft market and raised concerns about future sales and overall business expansion by indicating that certain nfts could be considered unregistered securities.
Industry executives are divided over the SEC's actions. The SEC fined Flyfish Club, an nft-themed restaurant, $750,000 on September 16 for selling nfts. Among those who opposed this enforcement measure were two SEC commissioners, Hester Peirce and Mark Uyeda. They argued that since Flyfish's nft sales are just an alternative way to market memberships, they should not be governed by securities laws.
nft leaders expressed a combination of dissatisfaction and doubts about the SEC's strategy in their responses. Luca Schnetzler, CEO of the popular nft collection Pudgy Penguins, called the SEC's actions “nonsense.” In a previous interview he referred to the agency's emphasis on OpenSea as a “burger with nothing.” Schnetzler stressed that larger companies involved in nfts, such as Sotheby's, Nike and Pokémon, also face scrutiny. This circumstance raises the question of how nfts will fare in the changing regulatory landscape.
