NFT trading has plummeted 97% since January, according to new data. This is a huge drop and it doesn’t seem like there’s any end in sight. Visit the official website of the trading-simplified bitcoin pro software to engage in cryptocurrency trading. So, what’s causing this sudden decline? Let’s take a look.
Crypto Winter and Lay-offs now
With the crypto winter in full swing and NFT trading down % since January, many projects are feeling the pinch. Unfortunately, this has led to a number of layoffs across the industry.
While it’s always difficult to see people lose their jobs, it’s important to remember that this is just a temporary setback. The crypto industry is still in its early stages and there will be many ups and downs along the way.
Those who are able to weather the storm will come out stronger on the other side. So, if you’re thinking about getting into NFT trading, now is still a good time to do so. Just be sure to do your research and invest wisely in the current NFT market.
Despite the downturn, a recent NFT sale brought in over $4 million in current time
NFT sales have been on the decline since January, but a recent sale has brought in over $4 million. The NFT was sold by an anonymous user on the decentralized marketplace OpenSea.
The NFT is a digital collectible that represents a piece of digital art. It was created by the artist Beeple and is one of his most popular pieces. The piece is called “Everydays: The First 5,000 Days” and depicts a collage of 5,000 images that Beeple has created over the past five years.
The sale of the NFT is notable because it shows that there is still interest in these types of assets, despite the overall decline in trading volume.
The buyer of the NFT has not been revealed, but it is clear that they are a major collector of digital art. The purchase price represents a significant premium over the $100,000 that Beeple originally sold the piece for in January.
It is also worth noting that the sale took place on an Ethereum-based platform, which suggests that the buyer is comfortable with cryptocurrency and blockchain technology.
According to statistics, the NFT market cap in 2020 was $338.04 million. According to Dune Analytics, the NFT market has shown signs of a bearish trend, falling from $17 billion to $466 million in January 2022. Drop rate is 97%. Google Search Trends for terms such as NFT also dropped significantly along with the daily unique wallet volume. NFT volume data were collected from platforms such as OpenSea, NFTX, LarvaLabs, LooksRare, SuperRare, Rarible, and Foundation. OpenSea, the largest NFT exchange by market cap, saw its revenue drop by 75%. While trading volumes have plummeted, user activity on these platforms has not. In July 2022, the number of dealers was 66,000, but by September 2022, it has decreased to 45,000.
Top quality NFT projects Bored Ape Yacht Club, CryptoPunks, and Azuki have seen their NFT sales and pre-order prices drop. Ethereum name service sales surged to 133.95% in the last 30 days, while demand for NFTs is declining.
Other Indications of Winter in the NFT marketplace
When the weather starts to cool off and the leaves begin to change color, it’s a clear indication that winter is on its way. In the NFT marketplace, there are a few other indications that winter is coming.
One of the clearest indications is the decrease in trading volume. Since January, trading volume has plummeted by %. This is likely due to a combination of factors, including the overall cooling off of the market and investors becoming more cautious as winter approaches.
Another indication that winter is coming to the NFT marketplace is the increase in prices for winter-themed items. As demand for these items increases and supply decreases, prices will naturally start to rise. This is already beginning to happen with some items, such as snowflake-themed NFTs.
So, if you’re thinking about buying or selling NFTs, be aware that winter is on its way and that may impact prices and trading activity in the market.
The post Winter Is Coming: What Does That Mean for the NFT Marketplace?
Conclusion
The drop in trading of NFTs since January has been precipitous, and it doesn’t seem to be slowing down. While the reasons for this are unclear, it could be that the novelty of NFTs has worn off or that the market is simply correcting itself after an unsustainable boom. Whatever the case may be, it’s clear that interest in NFTs has declined sharply in recent months.
