Synopsis
- While crypto has been battling the shakedown, the NFTs are now taking the hit.
- The NFT market went into retesting a few times.
- Analysis from Crypto Slate suggest that NFTs are down by more than 90%
The crypto market cap has come down to $1.01 trillion from $2.32 trillion in 2021. With the boom in the industry, the NFT market made its place in the industry and grew to become a multimillionaire market with NFT creators joining the bandwagon.
The crypto winter did hit the NFT sales volume initially. Top blue chip NFT projects slashed their floor prices and the sales volumes were affected slightly. The recent reports from Crypto Slate and the Block have outlined observations that the NFT market sales has plummeted to 90%.
The sharp drop in the NFT market clocked a sales volume to the tune of billions in trading. All thanks to the speculators, innovators and art enthusiasts. The trade volumes of these NFTs have averaged to a $ 35 million a week. Amidst an economy hit by inflation and recession, the NFT market sees no signs of a rebound.
Top NFT collections including Crypto Punks and Bored Ape Yacht Club are down by 80% as compared to their peak of 94% last spring.
Devin Finzer tweeted about the bear market stating we don’t mind the dips. His tweet covers his blog post that outlines how the market zoomed to heights and is now being tried under the crypto winter duress. He added that there is more to do in the NFT and the web3 space as the opportunity ahead is massive.He also outlined that the industry will be able to tap the $500B gaming industry and the $50B ticketing industry when the storm has settled.
Recent market conditions have affected almost every sector, and web3 is no exception.
I wanted to share my thoughts on the opportunity ahead, and the way we think about these short-term fluctuations.https://t.co/Hh7G9nvxtW
— Devin Finzer (dfinzer.eth) (@dfinzer) September 13, 2022
Venture capitalist Li Jin also argues today’s NFT crash, while driven by macroeconomic headwinds, will lead to a better and more utilitarian NFT market in the future.
Li Jin, a venture capitalist also pointed out that the NFT crash resulting from the economic meltdown will change for good when the market is headed with utilitarian perspectives.
“To me, the downturn also highlights the major opportunity that I see around NFTs, which is to take them from assets that people collect and speculate on, to assets that people actually use,” Li wrote in an email.
Jin is associated to investment firms Atelier Ventures and Variant as General partner has forecasted that NFTs will see massive adoption with digital identity management system backed by SBTs (so-called “soulbound” NFTs) to empower users with voting rights, membership in crypto communities, and tracking in-game assets.
Mahesh Vellanki, Managing Partner at SuperLayer – a crypto venture capital said that the Major Correction in the market will wipe out many projects but once the slate is clean the new NFT projects that are being built on different chains will pick up on the basis of their creativity. He also added that new NFT projects have been developed on Solana. With the NFT space reinventing itself during a flat market, the comeback of the NFT industry will be stronger than ever.
Source: Quartz
Additional Read: Bored Ape Yacht NFTs on the Verge of Liquidation