NFT Market Update — Week Ending May 6th, 2022

May 13, 2022

📈State of the Market📉

Total number of sales in past 30 days. Data from nonfungible.com.

Market activity for the past 7 days:

Thanks to the Otherside project launch, all the measures of the last 7 days look wonderful. Only measure that went down is the unique seller, which dropped slightly. With the crypto market continuing to drop, I am wondering if there are no hot project launches in the next 7 day period, will the market still keep its on fire temperature? My guess is maybe not.

-$WHALE Market Strategy Team

⚖ NFT Fear and Greed Index ⚖

The NFT Fear and Greed Index (NFGI) is currently at 76 (Thurs. May 5th, 2022), up from last Thursday’s (April 28th) index of 73 — skewed by the launch of Otherside as well as heavy activity in the Collectibles segment.

Readings for the NFGI are as follows: 0–20 = Extreme Fear, 20–40 = Fear, 40–60 = Neutral, 60–80 = Greed, 80–100 = Extreme Greed.CONTEXTUAL NOTE: The NFGI considers all segments in the NFT marketplace. Unfortunately, due to the size of the Collectibles segment relative to the Art, Metaverse, Gaming and Utility segments, the index is largely influenced and determined by activity within that segment.To put it into perspective, there are multiple periods where Collectibles Sales ($) and Active Market Wallet participation (which are both included in the calculation of the NFGI) exceeds 80% of the entire NFT ecosystem. This, therefore, skews the index in favor of that segment. Our data source shows that for the month of April alone, Collectibles Sales ($) increased by over 30% whereas as most of the other segments declined.The continued hype pushed by certain groups about a few projects, as well as the liquidity that is coming in through VCs (which are being allocated to these projects) is not only significantly inflating the floor prices but also resulting in individual pfp collectibles selling for $1 million. This creates further hype, fomo and more eyeballs on these projects resulting in a positive feedback loop that is spiraling out of control. The NFGI aimed to represent the NFT space in a fair and reflective manner but it is being dominated by this one segment.A recent example of this is the launch of the BAYC’s Otherside on May 1st. Despite a bearish sentiment in the NFT space, with sales for many 1/1 artists and photographers underperforming or being non-existent or the launch of their collection on platforms like Niftygateway, Makersplace or Artifex being largely disappointing as collectors are not showing up, the sentiment is skewed toward the activity in the Collectibles segment. Otherside resulted in gas fees hitting ridiculous levels and the associated metrics spiked causing the NFGI to hit a level of 85 or Extreme Greed.Any person who is in tune with the NFT space knows the bearish sentiment that exists today, and one that has been in place since late November 2021, yet overall activity appears bullish. The activity of a few is unlike the quiet, lackluster performance of the many - for both sellers and buyers. The NFT space is being played out as The Tale of Two Cities - something I wrote about in a monthly report 5 or 6 months ago.The NFGI is designed that applies equal weights across all segments. It is also interpreted to be contrarian if it reaches the extremes of Extreme Greed or Extreme Fear. And when those situations occur, it is expected that the index will accurately reflect sentiment for the majority of time. But a conflict is occurring. The continuation of the Greed reading is in contrast with the bearish sentiment felt by many in the space. Why hasn’t the index fallen to reflect such sentiment? The answer lies within the market activity of the Collectibles segment. My worry is that this segment will blow a top and will crash and burn, but those companies, individuals and VCs that primed this market for a pump and dump will eventually leave. They have the ETH, perhaps converted back into dollars, and will just move on to the next nascent market that is primed for easy liquidity flows.It had been my desire to create a number of sub-indices for each segment but I feel now it’s a priority. One for Art and another for the Metaverse. But I will concentrate on the former as I believe that the latter could be affected by Otherside entering the fray.
- Frank, $WHALE Analytics Team

🥇 Top 3 Sales 🥇

Top sales in USD for the past 7 days.

This week a newcomer joined the top 10 list. Otherside lands dominated the top 10 list this week. It took 8 positions. That left only two positions for Bored Apes.

  1. BAYC #17 410 ETH (US $1 M)
  2. Otherside #33 333 ETH (US $984 K)
  3. Otherside #24 333 ETH (US $952 K)

Recent Events

Julian Holguin New Doodles CEO

Julian Holguin was announced as the new Doodles CEO earlier today (May 6th). Former Billboard President, Julian “will work alongside the founders to expand Doodles IP throughout music, gaming and entertainment, while deeply integrating culture into the product.” Doodles also announced that they will reveal the next phase of the Doodles — “Groundbreaking projects, transformative partnerships and a full reveal of our vision & roadmap.”

⚖ Landmark Case Recognizes NFTs As ‘Legal Property’ ⚖

NFTs are now officially recognized as property in the UK. The UK’s High Court has found in favor of Lavinia Osbourne, the founder of Women in Blockchain Talks, who claimed that two digital works from the Boss Beauties collection had been stolen from her online wallet. The judge held that the assets were “property” and thus able to have access to legal protections — in this instance, an injunction served on accounts on Ozone Networks (which hosts the NFT marketplace OpenSea), to freeze the assets, and a Bankers Trust disclosure “compelling [OpenSea] to send information about the two account holders” who currently hold the NFTs. This judgment will have far-reaching implications for disputes involving digital art and should give ‘better protection’ for owners of NFTs if they find themselves in such unfortunate circumstances.

NFTs recognised as 'legal property' in landmark case

The UK's High Court has recognised NFTs (non-fungible tokens) as "property" in a case which is likely to have…

www.theartnewspaper.com

🛒 Coinbase NFT Marketplace’s Limp Entry 🛒

Now that Coinbase has opened up their NFT platform to its remaining users after giving exclusive access to certain individuals last month, the numbers have disappointed and have significantly fallen short of any projections. Dune Analytics found that within five hours of the opening, only 100 transactions were recorded with sales volumes in the region of $60,000. Transaction volumes continue to be on the low side with cumulative sales of $600,000 after 24 hours. This will be a concern for investors given the expected income from this diversified model which was expected from the 1 million sign-ups from last year.

Coinbase's NFT marketplace is not getting the entry it expected | CryptoSlate

After its NFT marketplace to a selected number of users last month, all users will now have access to the platform…

cryptoslate.com

☕ Starbucks NFTs ☕

Starbucks is set to launch NFTs this year, offering access to ‘unique experiences and benefits.’ The coffee chain plans to enter the web3 space with the launch of its own NFT collection later this year. The NFT will give their owners access to exclusive content experiences and other benefits. “We are creating the digital third place. To achieve this, we will broaden our framework of what it means for people to be a member of the Starbucks community, adding new concepts such as ownership and community-based membership models that we see developing in the web3 space,” said Chief Marketing Officer Brady Brewer. However, Starbucks will unlikely launch their NFTs on the eth mainnet and is looking into a more environmentally sustainable platform that is more in line with its existing sustainability commitments.

🐫 Dubai Virtual Reg HQ Land in Sandbox 🐫

Dubai’s Virtual Assets Regulatory Authority (VARA) announced plans on Tuesday to establish a metaverse headquarters in The Sandbox virtual world. The launch is part of Dubai’s attempts to turn itself into a virtual asset hub. In the last two years, Dubai made a plan to become the hub of crypto. Binance was approved by Abu Dhabi regulators to operate as a broker-dealer in digital assets. Three Arrow Capital planned to move headquarters from Singapore to Dubai. ICICB also has an aggressive plan for its crypto branch. With the friendly regulatory environment, Abu Dhabi’s plan seems to be making a lot of progress recently.

Dubai's Virtual Assets Regulatory Authority launches in Metaverse - first regulator in the world to…

Dubai's VARA will join other private sector entities, innovators and market makers across the IT space, and financial…

gulfnews.com

👠Gucci Will Accept Crypto 👜

Luxury brand Gucci will begin accepting crypto payments in select stores across the US later this month. This is just one of many recent moves into crypto by the brand, which has a dedicated digital experiences team.

Gucci to accept crypto in leap for luxury industry

A handful of other luxury retailers have started testing out crypto payments. In March, Off-White announced that…

www.voguebusiness.com

👻 Guccighost’s Street Art Broke The Mold 👻

Now he’s turning his fashion IP into an NFT

Trevor Andrew, known as Guccighost, is retiring the Guccighost project with an NFT auction called Life of a Ghost. The successful bidder will receive 385 Guccighosts, the Guccighost Instagram account (with an updated bio) as well as the project’s website which will be a visual representation of the studio called Gucci Trap. The new owner can elect to price and sell each individual artwork, which will then disappear from the virtual studio once sold. IP and commercial rights will stay with Andrew and Gucci. The auction will take place on Makersplace with a date yet to be confirm

📢 Upcoming Drops 📢

  • Grant Riven Yun Life in Japan Niftygateway Sunday May 8th
  • Trevor Jones has a drawing for 20 EthGirl NFTs with their corresponding prints. This will require a Google Sheet submission form to complete your entry which will take place over a 48 hour period. Less than 24 hours remain. Each NFT will be 2.5 ETH.
  • Doodles gave a teaser about a “mysterious device [that] will drop into the Doodles universe” on May 12th.

👀 Weekend Reading 👀

Nicole Buffett on NFTs, Their Future and Explaining Them to Her Grandfather by Fran Velasquez

🎫 Conferences 🎫

Call for Emerging Artists!

NFT SEA NYC will take place on June 20, 2022.

Emerging Artists are encouraged to submit their NFT for display at this event. Submission DEADLINE: May 25, 2022

🐳 The Tao of WhaleShark 🦈

On Soldiering Through Challenges


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