The Interest Of The Crypto Community In The NFT Has Almost Disappeared

The Interest Of The Crypto Community In The NFT Has Almost Disappeared

The Interest Of The Crypto Community In The NFT Has Almost Disappeared

NFT tokens became a real hit at the end of 2021, however, with the advent of the crypto winter, the sector began to decline

The market for non-fungible tokens (NFT) is not going through the best of times. According to the NFTGo platform, which tracks activity around tokens, the market has been suffering rapid losses since April 2022.

For example, the Blue Chip index, which tracks the performance of top NFT collections, has been in a downtrend since the end of April.

Source: nftgo.io

The fall is more clearly seen in monetary terms. So, in mid-March 2022, the total capitalization of the leading NFT collections was $36.6 billion, but on August 17, the figure dropped to $22.5 billion.

Even more revealing is the trading volume. They collapsed from $2 billion to $267.6 million. This may signal a drop in retail investor interest in NFTs.

Also, a decline was noticed in terms of trading volume on NFT marketplaces. If in January almost $5 billion was traded on OpenSea , then in August the figure fell to $501 million. In addition, the volume of transactions also decreased. In December 2021, just over 5 million transactions were recorded on the NFT market, but in August 2022 this figure barely exceeded 1 million.

Source: nonfungible.com

The decline in user activity is also seen in new marketplaces. Recall that the video game distributor GameStop launched its NFT marketplace in the summer of 2022. If at the start the daily revenue was $44,000, then in August it fell to $4,000 per day.

The editors wrote back in July that the minimum quotes for NFT tokens from the collection of Bored Ape Yacht Club and Otherside NFT from Yuga Labs fell by 30%. The conference at NFT.NYC and Bored Apes ApeFest 2022 in New York was also insufficient. The purchase of the KnownOrigin NFT marketplace by eBay also did not arouse interest.

According  to Bloomberg columnist Aaron Brown, the NFT market has entered a phase of consolidation. The expert notes that the industry will survive and become more mature, leaving behind the speculative frenzy of 2021. Read about how OpenSea ended up on the verge of the NFT marketplace war in the BeInCrypto editorial material.

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