Formfunction to shutter marketplace amid Solana NFT slump

Formfunction to shutter marketplace amid Solana NFT slump

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Shape function, a Solana (SUNThe )-based non-fungible token (NFT) marketplace has announced its shutdown after just 13 months of operation amid a drop in Solana NFT prices and trading volumes.

On March 15, Formfunction Announced is “shutting down” on March 29 saying it “cannot continue to operate” after “much discussion and careful consideration.”

The exact reason for shutting down the platform was not disclosed in the announcement.

Formfunction’s head of community and marketing, known by his pseudonym “Magellan,” tweeted on March 15 that the co-founders and team will “turn in a new direction, probably out of crypto.” [and the] space SOL”, but did not provide further details.

Cointelegraph reached out to Formfunction co-founders Matt Lim and Katherine Liu for comment but did not immediately receive a response.

The market close comes after its launch just over a year ago, on February 3, 2022. according a Magellan during that time made $5 million in sales despite a “brutal bear market.”

Shortly after its launch, the platform also increase a $4.7 million seed round in March 2022 led by VC firm Variant Fund and contributions from other VC firms Solana Ventures, Canonical Crypto, Pear VC, Palm Tree Crew Crypto and OpenSea Ventures.

Since the release of Formfunctions, the broader Space Solana NFT it has plummeted in terms of volume and minimum prices along with a drop in the price of the SOL.

Figures from Solana NFT data aggregator SolanaFloor show that its index of “blue chip” NFTs on the blockchain saw a 75% price reduction in dollar terms since the beginning of February 2022.

The USD price of a top-tier NFT price index in Solana as of January 1, 2022. Source: SolanaApartment

The daily number of Solana NFT buyers has also experienced a slowdown in the last 12 months. According to CryptoSlam data, daily unique buyers currently hover around 7,000, almost half the number seen on average in early 2022.

Solana has seen a drop in NFT daily unique buyers (blue) since March 2022 and daily sales volumes have also halved to less than $4 million. Fountain: Cryptostrike!

SUN price it has also sunk since the release of Formfunction, in early 2022 SOL was trading at around $100, now it is down over 80% and is currently trading around $19.

The price of the sun took a significant hit at FTX’s November 2022 crash and has struggled to regain traction ever since. founder of FTX Sam Bankman-fried He was one of the first investors in the Solana blockchain.

Related: Do the ‘Ethereum killers’ have a future? This is what the crypto community says

Notable NFT Collections First Solana native they are apparently leaving the platform as well.

In December of last year, DeGods and y00ts, two high-performance Solana NFT projects, announced they will have been to Ethereum and Polygon to “explore new opportunities” and enable continued growth of collections.