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Formfunction NFT Marketplace Shuts Down Amid Solana Slump

Discover why Formfunction, a Solana-based NFT marketplace, is closing after 13 months due to declining NFT prices and trading volumes.
Published on 2023-03-16

Formfunction's Closure Announcement

Formfunction, a marketplace for nonfungible tokens (NFTs) based on the Solana blockchain, has decided to close its operations after just 13 months. This decision comes in the wake of declining prices and trading volumes for Solana NFTs. The platform announced its closure on March 15, with a final shutdown date set for March 29. The decision was made after thorough deliberation.

Decline in Solana NFT Market

The Solana NFT market has faced significant challenges, contributing to Formfunction's closure. Since the beginning of 2022, the USD price of a key index of blue-chip NFTs on Solana has declined. Moreover, there has been a noticeable decrease in daily unique NFT buyers since March 2022. This downturn has been accompanied by a reduction in daily sales volumes, which have halved to under $4 million.

Market Implications

The closure of Formfunction highlights the broader issues within the Solana NFT ecosystem. These challenges reflect a decrease in demand and market activity, impacting the viability of platforms operating in this space. The slump in prices and trading volumes underscores the volatility and risks associated with the NFT market on Solana.

Conclusion

The shutting down of Formfunction serves as a cautionary tale for NFT marketplaces operating on volatile platforms. The decision reflects the current state of the Solana NFT market, characterized by reduced buyer activity and significant declines in sales volumes. As the NFT landscape continues to evolve, platforms must adapt to changing market conditions to sustain operations.

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