Last week, when Ars analyzed the first day of the NFT sale on GameStop’s highly publicized crypto marketplace, some boosters suggested that this was just a starting point and that interest and trading volume could increase over time. More people can discover trading. platform. In the first week of the market, however, interest in trading GameStop NFTs has been declining compared to that launch day performance.
An Ars-exclusive analysis of the GameStop NFT Marketplace now shows that it accounted for approximately 5,254 ETH in total trading volume in its first week (about $7.8 million at current exchange rates). This is a daily average of around 750 ETH ($1.117 million) in total trading volume. GameStop charges a 2.25 percent fee for all those trades, which represents a daily average of 16.9 ETH ($25,113) in direct revenue from the company. All told, six of the more than 300 collections on the platform accounted for the majority of that trading volume.
(Note: The sometimes volatile ETH price has risen by about 38 percent since last Tuesday, when ARS analyzed its launch day of the market. Unless otherwise noted, we’re going to provide the current ETH spot price. – $1,488.06 as of this writing – for conversion here, even though the first transaction of the week took place at lower dollar/ETH rates.)
According to Ars analysis, the average daily trading volume in the first week is a significant bearish trend from the day of market launch, when it processed 1,831.81 ETH in total trading volume (at the time the price was approximately $1.976 million or $2.725 at today’s rates). million). On that first day, GameStop earned approximately 41.2 ETH in transaction fees (about $44,500 at the time or $61,331 today).
Of the hundreds of NFT collections that saw some trading activity on the first day of trading, the average collection saw a nearly 50 percent decrease in average daily volume during the first week of trading (when compared to launch-day volume). This does not include the 34 collections that have not yet seen a single trade in the market, 25 of which are available from day one.
And the dozens of new NFT collections in the market (that is, those that saw their first transaction on the day of the market launch) are not bridging that gap. These 85 or so collections accounted for only 556 ETH of the total trading volume over the past six days (approximately $828,575).
Any way you slice it, total activity on the Gamestop NFT Marketplace has been slowing in the days since the service launched. Given the months of demand among crypto bulls and GameStop stock enthusiasts issued on the day of the platform’s launch last Monday, this is perhaps not too surprising. This is not surprising in the context of the broader NFT market, where a major market like OpenC has seen daily trading volume drop by almost 90 percent since its peak in January.
Still, the downturn is a setback for GameStop and Crypto Booster, who hope the introduction of NFT trading could revolutionize GameStop’s brick-and-mortar-focused business model. For now, if trading on the GameStop NFT Marketplace continues at the same weekly rate, the total trading volume in its first year will be around 273,000 ETH. It’s worth about $406 million in fiscal 2021 net sales today, or about 6.75 percent of GameStop’s $6.011 billion.
Of that amount, GameStop will take approximately 6,147 ETH in transaction fees (approximately $9.15 million), which is only 0.15 percent of GameStop’s fiscal 2021 net sales, or 2.4 percent of its fiscal 2021 loss of $381 million. and also If GameStop HODLs all your ETH And If the cryptocurrency bounces back to its all-time high of around $4,800, then those annual transaction fees would only be worth $29.5 million (about 0.49 percent of fiscal 2021 net sales; 7.7 percent of fiscal 2021 losses).
Nothing beats earning millions of dollars a year from an entirely new line of business, especially when GameStop doesn’t have to worry as much about inventory or brick-and-mortar overhead for selling NFTs. Still, it’s not the kind of bottom-line performance that would seriously impact a multi-billion dollar company in the long run.
It’s still early days for GameStop’s NFT business, however, and the broader market for NFTs may still bounce back from its current gloom. Or maybe the eventual integration of “Web 3 Gaming” properties on the GameStop Marketplace (which the retailer says will be added “over time”) will help cement it as “the ultimate destination in the new paradigm of gaming, As Robbie Ferguson of Irreversible suggested when Announcement of a deal with GameStop in February,
For now, though, GameStop and its boosters will be watching and waiting for a change like this. Until that happens, the GameStop NFT Marketplace seems destined to be a relatively minor part of the international retailer’s business.
Listing image by Metaboy/GameStop NFT Marketplace