Is Mirror Protocol undergoing exploit for the second time? Here’s the truth
Will Ethereum’s [ETH] 16% spike set it up for a rally to $2,500
DraftKings puts out plan to to accept crypto-payments in the future
Is Bitcoin’s [BTC] price recovery being supported by Lightning Network’s growth
Bitcoin: Unraveling the breakout potential and how investors can capitalize on it
Is Bitcoin’s [BTC] price recovery being supported by Lightning Network’s growth
Bitcoin: Unraveling the breakout potential and how investors can capitalize on it
Bitcoin’s [BTC] pricing model has this to say about its short-term prospects
Bitcoin [BTC] manages to see some green on the charts, but here’s the caveat
Why Bitcoin [BTC] could linger around $27k until the end of Q2 2022
Will Ethereum’s [ETH] 16% spike set it up for a rally to $2,500
More than 10% ETH deposited in ETH 2.0 contract but here’s the caveat
Ethereum [ETH]: How HODLers managed to remain unnerved by the crash
Terra [LUNA]: Nansen’s report reveals new information on UST’s depegging fiasco
Here’s Ethereum co-founder’s take on algorithmic stablecoins
Published
on
By
The crypto market has taken huge hits in recent weeks with $500 billion being wiped out of it. The NFT market is among the first ones to take the huge brunt of it. The euphoria around the NFTs has cooled down recently which has opened the floodgates to losses across the board. The NFT sales volume by May has roughly equaled last year’s entire total of $40 billion but there’s a catch.
In a weekly update by IntoTheBlock’s Head of research, Lucas Outumuro, briefed on the recent downfall of the NFT marketplace. He pointed out in the study that the ‘furthest assets in the risk segment are getting crushed’. Despite starting the year on a high, the NFT transaction volume has dropped spectacularly.
Take the example of the Bored Ape Yacht Club that has fallen by a massive 60%. The report says,
“Buying a BAYC NFT at floor price four weeks ago would have resulted in a loss of nearly a quarter of a million dollars. This coincides with a drop in Ether’s price, which is the main currency in which NFTs are traded. However, ETH is down “only” 30% in May, while most NFT collections have lost over half of their value.”
Source: IntoTheBlock
The crash in the NFT prices eventually led to a dramatic downturn in trading volumes. The NFT market was unable to carry the momentum earlier from the year and plummeted starting April.
In January alone, the transaction volume was above $16 billion but it crashed down to just $4 billion (so far) in May. As per TechCrunch, Coinbase’s NFT marketplace has disappointed so far, trading under a million dollars worth of NFTs and less than 2,000 users.
Source: IntoTheBlock
With stark drops in prices and trading volumes, there was a drop in the social sentiment for NFTs. Similar to its trading volume, the Google Searches for NFTs have dropped by 75% since its peak in January.
Source: Google Trends
Transactions since last summer have come in “fits and starts,” according to a report from Chainalysis. Two spikes in particular are responsible for driving the NFT activity. The first is the launch of the Mutant Ape Yacht Club during late-August. While, the second is the launch of a new NFT marketplace called LooksRare that shot up activity in January-February.
Ethan McMahon, an economist for Chainalysis, said this indicates that the NFT market is starting to consolidate, with few companies holding a growing market share.
“Things are changing,” he said. “[What] we have been seeing is consolidation in the more well-known blue chip collections of NFTs.”
David Hsiao, the chief executive of the crypto magazine Block Journal, said the market for digital assets looks bleak in the days ahead, and he wanted to limit the damage by selling now. Hsiao added that he expects the NFT market to suffer because of the declining price of cryptocurrency, along with other conditions like inflation, the prospect of rising interest rates, the pandemic and Russia’s war in Ukraine.
“If we enter a real recession, NFTs are going to be the first to go,” he said. “People aren’t going to value art, especially such a new age of digital art, when there’s a lot more problems in the world.”
(function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[1]=’FNAME’;ftypes[1]=’text’;fnames[0]=’EMAIL’;ftypes[0]=’email’;}(jQuery));var $mcj = jQuery.noConflict(true);
‘Bitcoin at $250,000 in 2023?’- This proponent might make you a BTC maxi
How Avalanche [AVAX] is managing to recover despite declining user interest
Kanav is a journalist at AMBCrypto. He has a Masters in Media and International Conflict and is interested in areas of digital society, crypto developments in the political sphere and the socio-cultural impact of a crypto-society.
Will Ethereum’s [ETH] 16% spike set it up for a rally to $2,500
More than 10% ETH deposited in ETH 2.0 contract but here’s the caveat
‘Bitcoin at $250,000 in 2023?’- This proponent might make you a BTC maxi
Ethereum [ETH]: How HODLers managed to remain unnerved by the crash
Terra [LUNA]: Nansen’s report reveals new information on UST’s depegging fiasco
Amid stablecoin market ‘May-hem’, Tether taking new steps to regain lost ground
Your email address will not be published.
document.getElementById( “ak_js_1” ).setAttribute( “value”, ( new Date() ).getTime() );
Disclaimer: AMBCrypto’s content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.
