Metaplex which is a collection of advanced development tools and open standards for managing digital assets on the Solana blockchain – experienced a drastic fall in its Gross Merchandise Value (GMV) in 2022, standing at $15.79M.
According to BanklessTimes.com analysis, this was an astonishing 96.9% decrease year-over-year and a 42.8% decrease quarter-on-quarter from the previous quarter.
According to BanklessTimes CEO Jonathan Merry, “Metaplex’s sudden and dramatic fall in GMV indicates a failure to engage developers and attract new users effectively.
“The platform was designed with ambitious goals, including providing an easy-to-use interface for creating NFTs and allowing users to access the token economy quickly and efficiently. However, Metaplex has failed to live up to its potential due to a lack of market presence.”
The sharp decline in GMV was mainly due to changes in the cryptocurrency market and the strong growth of NFTs (Non-Fungible Tokens).
The Solana price surged in the fourth quarter of 2021, rocketing from $161 to a peak of $259 before settling at $173 at the end of the quarter. This combined with the NFT frenzy at the time, resulted in an inflated GMV in USD terms.
In comparison, Q4’22 saw a significant decrease of 69.3% in SOL price, along with a 78.5% decline in weekly volume across all significant NFT marketplaces from $7.5 billion to $1.6 billion. This contributed to the dramatic decrease in Metaplex’s GMV, illustrating how crypto prices and NFT trading volumes can substantially impact cryptocurrency-related services.
The Metaplex Layoffs
Last year’s market turbulence and GMV decline have caused Metaplex to take the drastic step of downsizing its staff. Stephen Hess, the co-founder and CEO, announced on Twitter that they have decided to lay off several of their team members due to slow user uptake and decreased market presence.
Metaplex is not alone in facing such difficulties – other companies dealing with cryptocurrencies have also been forced to downsize. Exchanges, payment processing providers, wallet services, and app developers have all been affected.
Metaplex Accounts for the Majority of Solana Non-fungible Tokens (NFTs)
Metaplex first emerged in 2021, and by September 2022, it was responsible for more than 99% of all Non-Fungible Tokens (NFTs) created on the Solana blockchain platform. This impressive achievement resulted from Metaplex’s efforts to bring artists, developers, and entrepreneurs together through its open-source toolsets. The platform’s focus on NFT marketplaces and the ability to create unique digital assets using advanced development tools have enabled users to access the token economy quickly and easily.
However, with the subsequent market turbulence and a sharp decrease in GMV, Metaplex has been unable to maintain its presence in the NFT markets. Still, the team is determined to make a comeback in 2023.