Cardano’s NFT Market Performance Outperforms Top Blockchains Amidst “Ghost Chain” Nickname
According to data provided by Forecast Labs, Cardano, a blockchain known as the “ghost chain” due to its declining number of non-fungible token (NFT) traders, has demonstrated a significant performance in the NFT market during the month of June. In fact, it has outperformed several prominent blockchains in the industry.
According to a report by CryptoSlam, a data arm, there has been a notable decline in the number of monthly unique buyers of non-fungible tokens (NFTs) on the Cardano platform. The peak of 254,383 buyers in October 2021 has significantly dropped to a mere 13,559 in June. This represents a decrease of 10.12% compared to the previous month of May. The decrease in popularity has prompted certain individuals to refer to the blockchain as the “ghost chain.”
Notwithstanding this prevailing pattern, it is worth noting that the Forecast Car NFT Composite index, a metric that gauges the performance of the Cardano NFT market, experienced a decline of 3.84% to reach a value of 982.01 during the previous month. This decrease implies the possibility of losses for NFT traders who have invested in prominent collections on the Cardano platform.
According to data from Forecast Labs, NFT traders on Cardano have encountered relatively smaller losses in comparison to well-known NFT networks such as Ethereum, Solana, and Polygon. This contradicts the bearish perspective often associated with the “Ghost Chain” label. According to the June Forecast ETH NFT Composite, individuals who had invested in prominent NFT collections on the Ethereum platform would have encountered an approximate decline of 14.41% in their investments. During the same period, the Forecast SOL NFT Composite (Solana) experienced a decline of 14.71%, while the Forecast POL NFT Composite (Polygon) saw a decrease of 13.49%. In addition, the Forecast 500 NFT Index, which serves as a comprehensive gauge of the NFT market, witnessed a decrease of 16.14%.
Cardano’s native cryptocurrency, ADA, holds the position of the eighth-largest cryptocurrency worldwide in terms of market capitalization, with approximately US$10.4 billion in circulation. However, the NFT ecosystem associated with Cardano has encountered skepticism and has been deemed “inactive” by certain individuals on social media platforms. However, it is important to note that Musa Zaidi, the founder and CEO of NFT advertising firm NFT Hive Club, highlights the fact that Cardano continues to maintain a committed community and various projects that provide support to the blockchain network. Zaidi holds the belief that a bullish market movement has the potential to significantly impact Cardano in a transformative manner.
Data from Forecast Labs reveals Cardano’s resilience despite declining NFT traders
Despite the declining number of buyers in the non-fungible token (NFT) market, creators persist in launching their NFT collections on the Cardano blockchain platform. Renowned digital artist Joel Moore, widely recognized as Mulga, achieved a remarkable feat by effectively introducing the Mulgakongz NFT collection on the Cardano platform. This collection showcased an impressive assortment of 5,555 gorilla NFTs, all of which were swiftly purchased by enthusiastic buyers within a mere 48 hours of its launch.
There have been concerns raised within the Cardano community regarding the absence of support for genuine builders in relation to inactive NFT projects. According to Andy Lian, the author of “NFT: From Zero to Hero,” Cardano distinguishes itself by offering a user-friendly environment for NFT creators and traders. This is primarily due to its cost-effective transaction fees and scalability.
Lian emphasizes that the insufficient liquidity within the cryptocurrency market has a significant influence on the performance of the non-fungible token (NFT) market across various blockchains, including Cardano. The presence of limited liquidity presents significant obstacles for individuals who possess non-fungible tokens (NFTs) and wish to find buyers at their preferred prices. Consequently, this situation results in extended waiting periods and complications when attempting to sell NFTs.
Despite the prevailing market conditions, the developers of Cardano demonstrate unwavering dedication toward the construction and expansion of the NFT ecosystem. Count Stakula, a pseudonymous holder of Space Budz NFTs, observes that while there may have been greater enthusiasm surrounding the Cardano NFT space prior to the smart contracts announcement, the overall NFT ecosystem on the blockchain continues to exhibit robustness.
The recent performance of Cardano highlights its potential as a compelling choice for individuals interested in non-fungible tokens (NFTs) who are looking for a solution that is both cost-effective and scalable. In the ever-changing market landscape, Cardano is actively striving to establish itself as a leading blockchain platform for non-fungible tokens (NFTs), alongside established competitors such as Ethereum and Solana.