NFT Market Faces Major Downturn Amidst Broader Crypto Selloff
Mar 4
2 min read
The NFT market has recently experienced a significant decline, with total sales volume dropping to $107.1 million, a 28.9% decrease from the previous week. This downturn coincides with a broader selloff in the cryptocurrency market, where major assets like Bitcoin and Ethereum have also seen substantial losses.
Key Takeaways
NFT sales volume fell to $107.1 million from $152.9 million.
The number of NFT buyers increased by 36.02% to 456,874.
Ethereum sales plummeted 67.86% to $25.3 million.
Pudgy Penguins, once a market leader, saw sales drop by 80.69%.
Overview Of The Current Market
According to data from CryptoSlam, the NFT market has been under pressure, reflecting a broader trend in the cryptocurrency space. The total market cap for NFTs has declined by over 90% since its peak in 2021, when it reached over $20 billion. As of now, the market cap stands at approximately $1.2 billion.
The recent figures indicate a mixed response from traders:
Sales Volume: Dropped to $107.1 million from $152.9 million.
Buyers: Increased to 456,874, up 36.02%.
Sellers: Grew to 314,871, up 32.81%.
Transactions: Remained stable with a slight increase of 0.86% to 1,566,183.
Ethereum's Struggles
Ethereum, a primary platform for NFT transactions, has faced a dramatic decline in sales. The sales volume for Ethereum-based NFTs fell by 67.86% to $25.3 million, despite a 20.27% increase in the number of buyers. This indicates a growing interest in purchasing NFTs, but at significantly lower price points.
Notable Sales Trends
Despite the overall decline, some collections have managed to stand out:
Courtyard: Top sales at $12.1 million, up 39.55%.
Ordinal Maxi Biz (OMB): Surged to $12.0 million, a staggering 450.88% increase.
DMarket: Dropped to $9.5 million, down 6.30%.
f(x) wstETH position: Newcomer with $6.1 million, up 173.91%.
Guild of Guardians Heroes: Rounded out the top five with $3.1 million, growing 7.38%.
In contrast, the once-popular Pudgy Penguins collection has seen a drastic decline, falling to tenth place with sales of only $1.6 million, an 80.69% drop.
Future Outlook
The NFT market's current trajectory raises questions about its future viability. With the overall crypto market cap dropping to $2.84 trillion from $3.18 trillion, the sentiment remains cautious. The integration of AI technologies into NFT platforms may offer a glimmer of hope, as seen with OpenSea's recent AI-powered NFT creation tool, which sparked a slight increase in trading volume for AI-related tokens.
As traders navigate this challenging environment, they must consider both historical performance and current market conditions before making investment decisions. The potential for recovery exists, but it will require significant positive developments to shift the current bearish sentiment.
Sources
NFT sales plummet 28.9% to $107m, Pudgy Penguins sales drop 80%, Crypto News.
NFT Market Cap and Sales Volume Drop Over 90% Since 2021 | Flash News Detail | Blockchain.News, Blockchain News.