NBA Top Shot Sales Revenue Fell by More Than $10 Million in February

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NBA Top Shot non-fun­gi­ble tokens took a nose­dive in rev­enue dur­ing the month of Feb­ru­ary after the mar­ket­place where fans can buy, sell, and trade the ‘moments’ saw a 19% decrease in sales from January.

Feb­ru­ary proved to be a tough month for investors in the cryp­to space. Decen­tral­ized exchanges (DEXs), prices of dig­i­tal assets, min­ing rev­enues, and sales rev­enues of sev­er­al major NFT col­lec­tions includ­ing NBA Top Shot tum­bled.  NBA Top Shot record­ed approx­i­mate­ly $47.5 mil­lion dur­ing the sec­ond month of 2022, accord­ing to BeIn­Cryp­to Research.

Although this fig­ure may look impres­sive due to the num­ber of non-fun­gi­ble token projects that have been added to the space over the past year, sales rev­enue for Feb­ru­ary was down. Sales for Feb­ru­ary declined by $11.4 mil­lion from Jan­u­ary, a stag­ger­ing 19.35% decrease.

NBA Top Shot volume falls from early 2021 highs

The decrease in sales rev­enue over the last month could have detri­men­tal effects on NBA Top Shot since the NFT mar­ket­places com­pete with oth­ers such as OpenSea, Axie Mar­ket­place, Rari­ble, Super­Rare, and Nifty Gate­way.

Although the cur­rent sales rev­enue is rel­a­tive­ly high­er than that of 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’s still far off from the highs it reached in the first quar­ter of 2021.

Source: Cryp­to Slam

NBA Top Shot sales rev­enue began strong­ly by end­ing Jan­u­ary 2021 with $40 mil­lion. Due to the boom in the demand for cryp­tocur­ren­cies, decen­tral­ized finance prod­ucts which ulti­mate­ly led to an NFT buzz in Feb­ru­ary, sales of NBA Top Shot moments reached a new all-time high. 

Total sales rev­enue in Feb­ru­ary 2021 was $224 mil­lion, a 452% spike in the sales record­ed from the first month of 2021.

Source: Cryp­to Slam

Sales rev­enue dipped by 7% to end March at $208 mil­lion. A huge plunge in sales ensued due to the increas­ing num­ber of NBA play­ers fea­tured in the mar­ket­place. Per the basic laws of eco­nom­ics, a high sup­ply of NBA Top Shot moments led to a decrease in price. Trans­ac­tions increased sig­nif­i­cant­ly from Feb­ru­ary but aver­age sales declined which saw rev­enue at the month end­ed April 30, 2021, at $82 mil­lion, a 60% decrease from March.

From the sta­tis­tics pro­vid­ed, it can be deduced that NBA Top Shot saw a year-on-year decrease of 78% in Feb­ru­ary and an 82% decrease from the year­ly high in Feb­ru­ary up to the last day of 2021.

What caused the sales decline?

Three fac­tors con­tributed to the fall in sales rev­enue for NBA Top Shot — increas­ing sup­ply, a decline in mar­ket prices for the moments, and a mas­sive drop in unique buyers.

After the mas­sive returns NFT brought ear­ly investors, the mar­ket was widened to be able to accom­mo­date the best moments of more than half of the play­ers in the NBA. This cre­at­ed a sat­u­rat­ed mar­ket in an already sat­u­rat­ed NFT market. 

In addi­tion to this, there has been a drop in unique buy­ers year-on-year. The total num­ber of unique buy­ers by the end of Feb­ru­ary 2021 was 80,822 while unique buy­ers for the month end­ed Feb­ru­ary 2022 were 73,304, a 9% decrease. Based on our indi­vid­ual needs and pref­er­ences, we are tempt­ed to pay more for a prod­uct we cher­ish when mak­ing our first pur­chase. To ear­ly investors, NFTs rep­re­sent­ed a piece of art that was price­less. Fork­ing over huge sums of mon­ey for col­lectibles that are indi­vis­i­ble, inde­struc­tible, ver­i­fi­able, and non-inter­op­er­a­ble was worth every cent spent.

Last­ly, declin­ing prices for dig­i­tal col­lectibles in the NBA Top Shot mar­ket­place have large­ly con­tributed to a fall in sales. There were con­trast­ing for­tunes between Feb­ru­ary 2021 and Feb­ru­ary 2022.

In Feb­ru­ary 2021, NBA Top Shot record­ed its all-time high sales of $208,000 from Top­Shot #38,764. Oth­er sales that helped dri­ve sales rev­enue includ­ed 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).

In com­par­i­son to Feb­ru­ary 2022, NBA record­ed a month high­ly of Top Shot #33025494 ($8,880). Oth­ers that con­tributed to sales rev­enue includ­ed but are not lim­it­ed to Top Shot #28696107 ($8,800), Top Shot #174746 ($8,340), Top Shot #29449507 ($8,190), and Top Shot #166577 ($8,000).

Source: Dap­pRadar

The month­ly high of Feb­ru­ary 2022 ($208,000) was 2,242% high­er than the month­ly high in Feb­ru­ary 2021. Although the total trans­ac­tions for Feb­ru­ary 2022 (1,716,656) were a 28% decrease in the total trans­ac­tions for Feb­ru­ary 2021, the sales fig­ures for 2022 are nowhere near that of 2021.

As of writ­ing, sales rev­enue of NBA Top Shot had topped $3 mil­lion, and this should rise as the NBA play­offs and finals fol­low the reg­u­lar sea­son into June and the rest of 2022.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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