GameStop Daily NFT Revenue Drops to Under $4K amidst Market Struggle

GameStop NFT revenue has dropped to less than $4000 after the platform’s trading volume reached an average of $166,000 over the past 24 hours. The platform charges a 2.25% fee on all NFT sales and with that sales volume, income is at about $3,700.

This is a significant drop from the $44,500 generated in fees on the platform’s first full day of operation in mid-July. On its July 13 debut, GameStop NFT had a sales volume worth $1.98 million which definitely brought a higher revenue than what the platform has today. The platform’s top 50 collections brought in more than $7.5 million worth of transactions in the first week of operation. In terms of transaction volumes, GameStop NFT performed marginally better than Coinbase’s NFT platform launched months prior.

The platform has, however, been unable to maintain its initial momentum, with sales taking a sharp dive over the past month. Between July 20 and August 19, the platform’s top 50 collections were responsible for a little over $10 million in transaction volume. While this might seem impressive, especially for a newly launched platform, with the 2.25% fee, revenue is at $250,000. This equates to $3 million annually, which would not be enough to save GameStop, which posted a pre-tax loss of $395 million in 2021. It has been projected that the situation could worsen this year. As it stands, losses in Q1 year over year have more than doubled. To save GameStop, the newly launched NFT platform would have to up its monthly trading volumes to more than $1 billion.

In an apparent industry-wide struggle, NFT Price Floor data indicates that Bored Ape Yacht Club (BAYC) floor price has dropped by 19% since the start of this month. As of today, August 22, the collection’s floor price is at 68.48 ETH ($109,900) with Mutant Ape Yacht Club (MAYC) dropping  28.6% to 11.2 ETH ($17,986). Following BAYC and MAYC’s respective floor prices hitting all-time highs of 153.5 ETH and 41.2 ETH in May and April, they have since dropped 55% and 72%.

Last week, $55 million worth of blue chip NFTs were at risk of liquidation on peer-to-peer lending service BendDAO. The platform allows NFT owners to take ETH loans against the floor price of their NFTs. The loans amount to about 30-40% of the deposited asset’s floor price. If the price drops to a point where the loan is equivalent to 90% of the floor price, the depositor risks having their NFT liquidated and auctioned if they do not pay off the loan within 48 hours. The CryptoPunks project, which experienced a surge from 68.3 ETH on August 1 to 77.4 ETH on August 4 has also retraced to 66.45 ETH.