The NFT sales volume has crashed from the recent highs, despite the digital art market surging over the past few weeks with no signs of stopping. In February alone, the NFT craze was in the center of attention with the mania hitting the peak after Beeple’s art selling for $69 million so let’s have a closer look at the analysis in our latest crypto news.
During the NFT peak, Tesla’s CEO Elon Musk tweeted about selling his NFT. But as the novelties start to wear off and the speculations enhanced, the NFT market entered a downtrend. The NFT sales volume on different marketplaces for digital art and collectibles dropped dramatically and exposed the absence of organing demand in the NFT space.
According to the figures from NonFungible, the daily value of NFTs sold across marketplaces dropped to $3 million from the previous $19 million on March 25th which marks an 85% drop. Other major metrics showed some worrying signs as well. In the past week alone, the number of sales and buyers dropped by 30% and 35% which are figures that left speculators and market participants wondering whether space is now in a pullback mode or the hype is finally over. NBA Top Shot which is an NFT marketplace for NBA trading cards, saw the total value of the NFTs in circulation drop by $800 million from a high of $1.85 billion to $1 billion.
As per the data of evaluation. market, the total value of sales experienced a similar decline as the demand slowed down. However, the demand is still healthy on the primary markets and the new releases from Top Shot continued selling out in a few moments. Considering this, it is possible that the speculative frenzy for NFTs entered an overheated market and led the space to experience a pullback.
Despite the recent pullbacks, other NFT marketplaces like OpenSea raised funds to expand their businesses which is clearly a sign of confidence from investors as they bet on the long-term sustainability and the growth of the industry. Non-fungible tokens will continue to exist in the broader crypto ecosystem and If this surpasses the recent highs soon, remains to be seen.
Just as we saw recently, NFTs are one of the hottest trends in the crypto space right now and a new collaboration is making their minting much easier. If you want to issue an NFT on Ethereum, chances are that you will spend about $150 in “gas” to approve, mint, and host your crypto art, digital collectible, and virtual land on the world’s most used blockchain.
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