NFT sales drop in September
Sales fell in September, causing further damage to the NFT industry. Sales for the month totaled $296 million, down 20% from $373 million in August, according to the data. Crypto Grand Slam. Worryingly, this loss is down 81% from the peak sales of $1.6 billion achieved in March 2024. .
In addition to the revenue loss, NFT trading has also seen a significant decline. There were only 4.9 million transactions in September, down 32% from 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 NFT sales are lower overall, but sold at higher prices. These special NFTs can attract collectors who expect their value to increase significantly over time.
The decline in the NFT market is being monitored simultaneously by the U.S. Securities and Exchange Commission (SEC). OpenSea CEO Devin Finzer announced on August 28 that the company had received the SEC’s Wells Notice. The warning draws attention to the regulatory challenges facing the NFT market and raises concerns about future sales and the overall expansion of the business by indicating that some NFTs may be considered unregistered securities.
Industry executives have mixed views on the SEC’s measures. Opponents of the enforcement action include two SEC commissioners, Hester Peirce and Mark Uyeda. They argue that since Flyfish’s NFT sales are just another way to market memberships, they should not be subject to securities laws.
In their response, NFT leaders expressed dissatisfaction and skepticism about the SEC’s strategy. Luca Schnetzler, CEO of the popular NFT series Pudgy Penguins, called the SEC’s measures “nonsense.” He called the agency’s emphasis on OpenSea “no burger” in an earlier interview. Schnetzler emphasized that large companies involved in NFTs, such as Sotheby’s, Nike and Pokémon, also face scrutiny. This situation raises the question of how NFTs will perform in a changing regulatory environment.
