On average, an NFT makes only $285 for every sale compared to the $2000 it used to make at the start of January. The full wallets with NFTs have increased by 2.8 million. The market of NFT is consistently suffering every month, with the average weekly trading volume reducing by 30 percent. Learn more about urgent regulation on stablecoins and Digital Yuan.
As per the data compiled by some analysts, the weekly trading volume of NFTs across the realm of blockchain plunged to $114.4 million. It represents a fall of 98 percent from the $6.2 billion seen around January’s end. The weekly trading volume of NFT increased to an ATH of $146.3 billion in April. It was before it fell off a sharp cliff in May with the beginning of a current cryptocurrency bear market.
Yet during the same time, the number of wallets owning a minimum of one NFT increased to nearly 6.14 million compared to almost 3.36 million at January’s end. NFT marketplaces witnessed a massive change from the year’s start. Some marketplaces were responsible for most of the trading volume of the dollar.
As part of a more significant decline in the price of Ether (ETH $1,318), the most widely used crypto for buying and selling digital collectibles, the cost of NFTs has also fallen significantly. An NFT currently sells for about $285 per sale, compared to about $2,000 at the beginning of January.
Tony Ling, the founder of NFTGo, stated in an interview with Cointelegraph that, despite the downturn in the market, NFT adoption would continue to be driven by innovation. Mastercard has launched NFT-customized debit cards, and Austrian post offices have recently tried out NFT stamps.
CryptoPunk NFT holders can now enjoy a bespoke pendant experience from luxury jeweler Tiffany & Co. However, the NFT market continues to deteriorate month over month, as the average weekly trading volume of NFTs has decreased by approximately 30% compared to August.
Non-fungible token (NFT) growth and adoption have also been negatively impacted by the recent market upheaval, which has affected significant cryptocurrencies and the ecosystem.
Is the hype of NFT finally fading?
At the beginning of the year, every celebrity, artist, and athlete jumped on the NFT bandwagon, making them the talk of the town.
In January, well-known companies like Samsung and GameStop announced plans to expand into the NFT sector, indicating greater institutional interest in the industry. NFTs ruled crypto Twitter, with sales reaching an all-time high of $17 billion and growing institutional interest in the industry.
Google search trends for the word “NFTs” also showed a significant drop, suggesting a decrease in retail and institutional interest in the sector. Retail interest in NFTs peaked in January and is currently at all-time low levels for the year as of this writing.
The $2 trillion loss that the global crypto market experienced as a result of tightening monetary policy was one factor that partially contributed to this decline in interest and trading volumes in NFTs.
How are leading projects doing?
Top NFT floor prices have significantly decreased from their previous all-time highs. CryptoPunks, on the other hand, has remained afloat and even gained some ground in the short term.
According to data from NFT Price Floor, the price floor of CryptoPunks is currently at 67.45 ETH, and the 24-hour trading volume is almost 4,312.3 ETH, with 15 sales. Additionally, the price floor of CryptoPunks has increased by 2.37 percent in the past 24 hours.
According to the most recent sales volume rankings for 30-day NFT collections, Ethereum Name Service (ENS) performed better than the top NFT collections, such as BAYC, Sorare, Mutant Ape Otherdeed, CryptoPunks, and Yacht Club. On the other hand, the top NFT collections experienced a decrease in both buyers and sellers and a decrease in floor price.
In contrast to most projects, ENS sales increased by 126.18 percent over the past 30 days, with a healthy increase for both buyers and sellers. CryptoPunks, on the other hand, sold the most in the last 24 hours, followed by Sorare.
Between July 2021 and July 2022, thieves stole NFTs worth more than $100 million. It is according to recent reports. It remains to get viewed what the future holds for NFTs this year. This is as trade volumes continue to decline and scams are still prevalent.
Conclusion
NFTs’ price fell as part of the broader plunge in the price of Ethereum. It is the crypto that got used for buying and selling digital collectibles. The market behavior shows that an NFT includes an average sale value of $285. It is in comparison to $2000 at the start of January. NFTGo’s founder, Tony Lig, said that innovation would drive NFT adoption. It is even after the implications of the market fall. Recently post offices based in Austria experimented with some NFT stamps. It was while MasterCard unveiled debit cards that are NFT-customized.
