NFTs hit by recession in crypto market, 92% drop in sales from January highs
Categories: Crypto News US
NFTs hit by recession in crypto market, 92% drop in sales from January highs
NFT sales hit a 12-month low amid the turmoil of the cryptocurrency market crash. NFT sales stood at just over US$1 billion in June, compared to US$12.6 billion in January. According to data from research firm Chainalysis, NFTs' June sales amounted to their worst performance since the same month last year, when sales stood at US$684 million.
The cryptocurrency market, which was valued at US$3 trillion in November 2021, has fallen below US$1 trillion and the decline in NFTs is linked to the widespread malaise of crypto. It is important to note that the dollar volume was so high that altcoin prices were on the rise. In June, when the market fell, the dollar value of traded NFTs fell along with the prices of the coins.
According to Chainalysis economist Ethan McMahon, “A time like this inevitably leads to consolidation within the affected markets, and for NFTs we will see a pullback in terms of the collections and types of NFTs that reach prominence.” OpenC dominates the space when it comes to NFT trading and continues to be a huge favorite among investors.
While other networks like Solana have also promoted the network, contenders like LuxRay – which only launched this year – stole market share from OpenSE, but only momentarily. OpenC holds over 55 percent of all NFT volume recorded for June, while LuxRay accounts for 32.45 percent.