In the course of the 2022 crypto crash, the NFT market also completely collapsed. While the non-fungible tokens around Bored Ape Yacht CLub, CryptoPunks and Co were still an absolute hype at the beginning of the year, the tokens in October are of no interest to anyone. NFT trading volumes have now fallen back to where they were in early 2021 when the trend took shape.
“Since the collapse of the crypto market, investor confidence in NFTs has declined, with ambiguity, theft and fraud being the downsides. According to NunFungible data, monthly NFT sales value reached more than $3.1 billion in October last year. Five months later, in February 2022, this value reached an all-time high of $4.5 billion. In the months that followed, however, the overall market slowed significantly, with June sales value dropping by as much as 75% to $1.1 billion, according to a recent analysis. From June, volume then dropped again through October to 366.4 million dollars.
Data from The Block in collaboration with CryptoSlam also shows that volumes have dropped dramatically. It is also clear that NFT art and collectibles almost never find buyers – NFTs are probably the most interesting in the gaming sector. Here are the stats:
Pioneers need to lose their feathers
Individual examples also show that the hype has decreased considerably. For example, the prices of Bored Ape Yacht Club NFTs, once showcase examples, have fallen sharply. “For the first time since August 2021, the Bored Ape Yacht Club NFT Collection is now trading below $100,000. Their floor price had halved since May, when BAYC NFTs sold for $200,000 each,” NunFungible said. “The prices of some highly valued NFT collections have also fallen sharply in recent months. Moonbirds have lost 60 percent of their base price in the past 90 days, while CloneX has seen a 20 percent drop in that period.”
The fact that OpenSea, the market leader in NFT marketplaces, has had to lay off many employees, also indicates how the young sector is doing. The Austrian NFT projects were also not really blessed with success. Whether it’s rappers, athletes or art – the tokens haven’t taken off (Trending Topics reported). It will be interesting to see if the industry will make a comeback – and if the European Commission will intervene in the NFT market with its own rules.
ÖFB, Klimt, RAF Camora: mixed development of Austrian NFT projects