Sales at OpenSea, the largest NFT marketplace, dropped to $700.0 million in June, from $2.6 billion in May.
The market for NFTs completely collapsed last month, plunging dramatically alongside the current descent of cryptocurrencies.
OpenSea, the largest NFT platform, saw its monthly sales volume drop to $700 million in June. It is down from $2.6 billion in May and a far cry from the peak of nearly $5 billion in January. NonFungible.com, which keeps tabs on purchases on the Ethereum and Ronin blockchains, reports the average price of an NFT fell to $412 by the end of June, from $1,754 at the end of April.
According to NonFungible.com co-founder and cryptocurrency expert Gauthier Zuppinger, the crypto bear market has undoubtedly influenced the NFT field.
There has been a lot of conjecture and commotion about this type of asset, he continued. People’s expectations have been adjusted downwards once they realize they couldn’t get rich overnight. The NFT market has dropped, along with cryptocurrencies, frequently used to pay for assets. It is due to central banks raising interest rates to combat inflation and a concomitant decline in risk appetite.
Crypto Collapse
Bitcoin has fallen by about 57% in the first half of the year, while Ether has fallen by about 71%. Critics say the crisis proves they were right. Investing in digital assets based on blockchain records connected to digital items like photographs and videos is frequently a bad idea.
In April, it was reported that the Malaysian businessman who paid $2.5 million for an NFT of Jack Dorsey’s first tweet struggled to elicit bids higher than a few thousand dollars.
However, the global head of product at a cryptocurrency trading firm, Benoit Bosc, sees the current market conditions as an opportunity to begin amassing a corporate NFT collection. The cryptocurrency industry’s answer to the priceless artwork displayed by traditional banks is to attract and retain customers.
In the past month, GSR has spent a total of $500,000. This sum was invested in NFTs from what Bosc refers to as “blue-chip” collections, meaning those with a sizable internet following. Toys like Yuga Labs’ 10,000 cartoon monkeys. It is endorsed by celebrities like Paris Hilton and Jimmy Fallon, are among his purchases from the Bored Ape Yacht Club NFT.
Cryptos Exchange
In April, Yuga Labs raised $285 million by selling tokens it says can be exchanged for land in a Bored Apes-themed virtual world. However, market tracker CryptoSlam reports that the average sale price of a Bored Ape fell to around $110,000 in June. Down by around half from its January peak of $238,000.
Bosc has three screens set up in his New York office to showcase his NFT collection. It includes a Bored Ape he purchased for $125,000 and other pixelated figures.
Bosc explained that this was also a brand exercise for their company. He claimed that one way to gain respectability, authority, and influence in the crypto community was to display a valuable NFT as a profile image on social media.
However, when the period of low-interest rates that encouraged investors to take hazardous bets comes to an end, the future of NFTs is decidedly questionable.
The impact of NFTs, according to some observers, will decrease in the future art market. In comparison, the much-touted vision of a blockchain-based metaverse has yet to come to fruition. The proponents of NFTs believe they will cause a revolution in the gaming industry. This is dine by enabling users to own virtual items like avatar skins.
DappRadar’s CFO Modesta Masoit predicts that gaming will become a significant use case for blockchain technology.
Players Must Play the Game
However, there may be obstacles to this approach, which combines gambling and financial speculation. According to John Egan, CEO of technology research firm L’Atelier, most players prefer games that do not have NFTs or play-to-earn components.
Spain is looking to crack down on selling virtual assets for real money within video games. Even though the revolutionary new crypto legislation agreed upon by the European Union last week mostly excluded NFTs.
Axie Infinity, the most popular NFT-based game, has seen the value of its in-game token fall to just half a cent, from a high of 36 cents in 2017.
According to L’Atelier’s Egan, the NFT market isn’t likely to rebound in its current state. In the end, he said, it’s a situation where extraordinary amounts of money are paid for limited assets.
Although this may be true, he argued that the idea of digital asset creation is fundamentally vital and would have considerable implications for the future of finance.
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