GameStop Daily NFT Revenue Plunges Below $4K Amid Market Struggle

In the terms of transaction volumes, GameStop NFT performed slightly better than Coinbase’s NFT platform which was launched some months before it.

GameStop NFT revenue has plunged to below $4,000 after the platform’s trading volume reached an average of $166,000 in the last 24 hours. The platform charges a fee of 2.25% on all NFT sales and with that sales volume, income is at around $3,700.

This is a considerable plunge from the $44,500 generated in fees on the platform’s first full day of operation in mid-July. During its July 13 debut, GameStop NFT had a sales volume worth around $1.98 million which brought a bigger revenue than what the platform has currently.

The platform’s top 50 collections raked in over $7.5 million worth of transactions in the first week of its operation. Based on the transaction volumes, GameStop NFT worked marginally better compared to Coinbase’s NFT platform launched some months before.

Nonetheless, the platform has failed to maintain its original momentum, with sales taking a steep dive in the last month. From July 20 to August 19, the platform’s top 50 collections were responsible for a little more than $10 million in transaction volume.

While it might seem impressive, mostly for a newly launched platform, with the 2.25% fee, revenue is at $250,000. This translates to $3 million yearly, which would not be adequate to save GameStop, which posted a pre-tax loss of $395 million in 2021. It has been forecasted that the situation might worsen this year.

As it stands now, losses in Q1 year over year have more than doubled so far. To save GameStop, the newly unveiled NFT platform would need to up its monthly trading volumes to over $1 billion.

In an apparent industry-wide struggle, NFT price floor data shows that Bored Ape Yacht Club (BAYC) floor price has plunged by 19% since the start of August. On August 22, the collection’s floor price is at around 68.48 ETH ($109,900) with Mutant Ape Yacht Club (MAYC) losing 28.6% to 11.2 ETH ($17,986).

After BAYC and MAYC’s respective floor prices hit all-time highs of 153.5 ETH and 41.2 ETH in May and April, they have since then lost 55% and 72% respectively. In the past week, $55 million worth of blue chip NFTs were at risk of liquidations on peer-to-peer lending service BendDAO.

The platform enables the NFT owners to take ETH loans against the floor price of their nonfungible tokens. These loans amount to nearly 30-40% of the deposited asset’s floor price.

In case the price plunges to a point where the loan is equivalent to 90% of the floor price, the depositor risks having their nonfungible token auctioned and liquidated in case they do not pay off the loan in 48 hours. The CryptoPunk project recorded a surge from 68.3 ETH on August 1 to 77.4 ETH on August 4. Since then, it has retraced to 66.45 ETH.