Is NFT hype cooling off for a while?

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Santrends
Sep 14, 2021

Assets covered: Enjin (ENJ), Decentraland (MANA), Chiliz (CHZ)

Metrics used: Active Addresses, Trading Volume, Social Volume, Supply Distribution by balance of addresses



It seems like the NFT craze starting to slow down a little bit. The total mentions of NFTs have been declining for about a few weeks now:

Source: Social Trends

It might be connected with fees on Ethereum network, which are cooling down as well:

Source: Sanbase

A few weeks ago the biggest part of gas has been burned by OpenSea, the largest NFT marketplace, and now Uniswap has flipped it, becoming the biggest gas burner again.


Next we might want to have a look at general activity of the biggest NFT related ERC-20 tokens: ENJ, MANA, CHZ. Three projects that have been pumping back in March and April. These were the predecessors of the today's NFT, these are the OGs. Where they are now, compared to where they were in the first leg of the NFT craze. Just in terms of their active addresses, in terms of whether people are selling or not.



Enjin


We can take only three major volumes and whales for a short overview (active addresses, trading volume, social volume, supply distribution by balance):

Source: Sanbase

What do we see here?

  • Volumes saying that the crowd involvement in Enjin has been much stronger in spring. Almost 10 times stronger then now. And it keeps declining. No "fresh blood" flood into these tokens.
  • Surprisingly whales were late to the spring ENJ party, bought the dip and offloaded recently.


Decentraland


Source: Sanbase
  • Same here: the crowd involvement in MANA has been much stronger in spring and keeps declining. No "fresh blood" flood into Decentraland too.
  • Whales were smart and early in spring, now almost reluctant, offloading slightly.


Chiliz


Source: Sanbase
  • CHZ looks a bit different. It's onchain activity (active addresses) has been higher in spring on average. But it also has some strong irregular spikes. Connected to various 'fan tokens' release by Chiliz may be.
  • Whales' balances are volatile but keep increasing in long term. Even higher than in spring now. Do they know something?


Overall,


If NFT craze if probably cooling off a bit indeed, then what's next? DeFi again? Watch this space.



Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

ENJMANACHZ
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Santrends
Sep 14, 2021

Thanks for reading!

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Assets from this insight

Enjin Coin logo

Enjin CoinENJ

$ 1.62

7.68%in last 7d
Decentraland logo

DecentralandMANA

$ 0.811182

4.27%in last 7d
Chiliz logo

ChilizCHZ

$ 0.322008

5.49%in last 7d

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