The NFT market has fallen as fast as it took off
The NFT market was sold as a way to allow creators to have more control and sales over their work. The reality is that it has been a fleeting fashion and nowadays they no longer generate so many sales.
If you want to know what NFTs , or non-fungible tokens, are—which would allow artists and creators to sell their work via blockchain by creating unique files—it was a hot topic a few months ago. Many tech enthusiasts gave it a lot of hype because of its real-world utility using blockchain and its potential as an investment. On the other hand, skeptics criticized it for its high power consumption when using the Ethereum blockchain , and questioned whether it's truly beneficial for artists, given the increased resale value and the fact that it's specifically promoted by high-selling and well-known artists.
[amazon box=»B08ZD8T7F7″ title=»NFT for Beginners» star_rating=»none» template=»table»]The NFTs and their market were a flower for a few months and are no longer interesting
The NFT market has plummeted over the last month, and sales in all categories have almost completely sold out. NFTs peaked on May 3, when $ 102 million were sold in a single day. The crypto collectibles market accounted for $ 100 million of those sales. But according to data analyzed by Protos, only $ 19,4 million in NFT sales were processed last week.
Overall, $ 170 million worth of NFT was traded in the seven days circling the top of the market, a collapse of close to 90%. NFT collectibles have so far proven to be the toughest and still the largest of the seven markets ranked by NonFungible.com. Last week around $ 9.2 million worth of crypto collectibles was sold, accounting for almost half of the entire NFT market.
NFTs tied to the so-called " metaverse ," such as digital real estate and other virtual artifacts, are actually outselling tokens tied to crypto art. The number of active NFT wallets also dropped from over 12,000 at the daily peak for each NFT category to just 3,900 yesterday (a nearly 70% decrease). Over the past week, $3.3 million worth of metaverse NFTs changed hands, while $3 million worth of crypto art was sold. These figures include sales in both the primary and secondary markets.
Using daily data, the primary and secondary markets for crypto collectibles are currently the largest ecosystem for NFT sales. The secondary market for NFTs that serve as sports memorabilia is close to a third larger. Surprisingly, those NFTs are now more popular than crypto art. Sports NFT traders exchanged tokens worth $3,16 million last week. Ultimately, the data suggests that the NFT bubble lasted only four months, bursting around this time in May.
Source: Protos
