In the fashion and luxury NFT market, while trading volume dropped off significantly from Q1 to Q3, the report argues that demand for fashion and luxury NFTs remain one of the strongest use cases. A case in point, the collection was created by Tiffany & Co, with a mint price of 30 ETH ($50,000), sold out in 20 minutes, worth $12.5 million in revenue. Sports NFT market
The sport NFT market led by soccer and basketball, with Sorare and NBA Top Shot, combined generated $128 million in trades during Q1 from more than four million trades. The volume decreased 63% in Q2 while the number of sales crashed by 54%. In Q3 the total trading volume is more than $18 million, a further 61% decrease from the previous quarter, and the sales count is one million, a 47% from Q2. Despite the bleak financials the report believes the sports market for NFTs is still strong, with Sorare to benefit from the 2022 World Cup later this year.
The impact of The Merge
Finally, in terms of the impact of Ethereum's Merge on NFTs, the consequent reduction in energy consumption required by the new Proof of Stake mechanism, was a positive step forward to combat criticism of NFTs, the report finds:“This is a significant advancement for Ethereum and particularly for NFTs, successfully rebutting one of the most common NFT objections.”
Notes to Editors
 DappRadar Q3 NFT Report
 The Merge and dangers of NFT duplication
Despite The Merge being supported by most developers in the Ethereum community some developers in the Ethereum community split the blockchain and created a new chain that continues to use the existing proof-of-work mechanism. The most notable example so far is ETHPOW, which is headed by the renowned Chinese miner Chandler Guo.
As ETHPOW and other forks diverge from the Ethereum mainnet, they produce duplicate copies of Ethereum's NFTs. An NFT is only a blockchain token that may serve as proof of ownership for digital assets like artwork and collectibles. Therefore, a branched Ethereum chain will contain multiple deeds pointing to the same piece of art or media.
A Bored Ape Yacht Club NFT owner may sell the duplicated version on the proof-of-work chain, but if the same transaction is 'replayed' by a malicious actor on the merged proof-of-stake chain, the seller may also lose the original version on that chain.
 Digital art in Q3
In Q3 the overall trade volume is $58 million, a 72% reduction from the previous quarter. The number of sales decreased by 43% over the previous quarter, reaching 258,000.
Socials: Twitter - Discord - Reddit - Telegram - Facebook
Founded in 2018, DappRadar is the The World's Dapp Store: a global decentralized applications (dapps) store, which makes it easy for its base of more than 1 million users per month to track, analyze, and discover dapp activity via its online platform. The platform currently hosts 9,000 dapps from across 30+ protocols and offers a plethora of consumer-friendly tools, including comprehensive NFT valuation, portfolio management, and daily industry-leading, actionable insight.