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Monthly NFT sales were below $1 billion for the first time in 12 months, according to data by CryptoSlam. Since July 2021, the NFT market has stayed relatively strong but is now slumping along with cryptocurrencies.
Last November, average daily NFT sales amounted to 200,000 per day, compared to only 19,000 in June this year — a decrease of more than 90% in 8 months.
OpenSea also saw a decrease in sales. In June, the NFT marketplace recorded $670 million worth of transactions, 75% lower than in May. For instance, in January, OpenSea saw $5 billion in trading volume.
The total crypto market cap has plunged over 60% since the year began and currently sits under $900 billion. Ethereum is also down over 60% since January, and it’s the blockchain on which most NFTs live, including blue-chip NFT projects such as BAYC and CryptoPunks.
“The NFT market has not been immune to the crypto market (and business) turbulence and when coupled with [traditional finance] downturn — in particular the tech stocks crash — it is a perfect storm for loss of confidence,” Jonathon Miller, director of crypto exchange Kraken, told Forkast.
Although it’s still uncertain when the market will recover, utilities provided by NFT technology should survive through unstable market conditions.
The market will need new investors after crypto funds and projects stop collapsing, as happened with Luna Terra two months ago, Celsius last month, and Three Arrows Capitals’ bankruptcy last week.
“The seeming collapse of closed book lending businesses may be viewed in the long run as a reminder that open transparent infrastructure is ultimately the foundation upon which a new wave of digital financial tools will be built. The projects and businesses that stay as true to this as possible are the ones that can weather the storm,” Miller said.
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