- Despite a decrease in NFT sales the volume of traders have not decreased much.
- Trade volumes of BAYC NFTs was 3,634 ETH last week.
- A report from DappRadar observed that on-chain metrics show a bullish trend despite the bear market.
The prolonged crypto winter has also affected the NFT market. With a drop in crypto outflow from exchanges owing to the economic downturn, the NFT volumes too have taken the bullet. Weeks after Terra LUNA collapse the crypto market was whipsawed which started affecting the NFT sales of the top NFT projects too.
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According to statistics, the NFT market cap was $338.04 million in 2020. The NFT market showed some signs of bearish trends in January, 2022 and fell from $17 billion to $466 million as per Dune Analytics. The drop is a whooping 97%. Google search trends for terms like NFTs also dropped significantly along with daily unique wallets volumes. The data of NFT volumes have been gathered from platforms like OpenSea, NFTX, LarvaLabs, LooksRare, SuperRare, Rarible, and Foundation.
OpenSea, the biggest NFT exchange by market cap, saw a decline in sales by 75%. Whilst the trade volumes have declined by a huge margin, the user activity on these platforms have not declined much. The traders volume ranged to 66,000 in July,2022 and have dropped to 45,000 in September, 2022.
Top Bluechip NFT projects Bored Ape Yacht Club, CryptoPunks, Azuki have seen a decline in sales as well as the floor price of their NFTs. While demand for NFTs have declined, sales of Ethereum Name Service have skyrocketed to 133.95% in the past 30 days.
Amongst top NFT projects BAYC lost its top spot in the Top NFT list against projects like Terraforms and Crypto Punks. BAYC has lost 8% of its market cap in the last one week. According to statistics, NFTs have lost $ 2 trillion of its market cap since the crypto meltdown of May, 2022.
Other indications of a winter in the NFT market
In mid July, 2022 OpenSea the biggest premium NFT marketplace laid off 20% of its staff which clearly hinted that the NFT market hasn’t been doing well amidst news of tax regulations, Feed interest rate hikes, the Ukraine and Russia war. Recent thefts of artworks of BAYC from Discord and other loopholes in the NFT ecosystem contributed to the overall slump.
Alberto Mugrabi, an art collector, had a contrasting sentiment towards NFTs slump.
“It happens in every period that the market shrinks, and a handful of artists succeed and move forward. The serious artists stick around and become bigger and better”, Mugrabi said in an interview with ArtNews.
NFT volumes drop across top blockchains
In the last 30 days, the NFT drop across blockchains includes 80% on BNB, or $19.19 million the largest wipe off in the sub sector of crypto according to data from NFT aggregator, Cryptoslam. According to Yehudah Petscher, NFT relations strategist, CryptoSlam, “The Market is yet to find its bottom’’. According to him NFTs are too in a trough but it will revive over a few years.
While top crypto assets are trading at a low price, NFTs too have reevaluate their floor price to attract more buyers.
Additional Read: Opensea – An NFT Ghost Town After 99% Plunge in Volume!
Source: Beincrypto, Forkast.