Right, get that “I told you so” out of your system now so that we can move on. Done? Great.
The NFT market has dropped so substantially in the last month that many are stating that the bubble has popped and looking at a report from Protos, that does appear to be the case.
The market appears to have peaked on 3rd May when NFTs totalling $102 million were sold in one day. That’s pretty good but what isn’t is how far that figure has dropped in the last week.
Looking at the data, Protos reports that a paltry (compared to the peak) $19.4 million in NFT sales was recorded over the last week.
Using NonFungible we can also see that not only is the revenue from NFTs down, but sales are as well. On 25th March there were 179 656 sales, on 3rd June there were just 20 744 sales.
So NFTs are dead then right? Maybe not.
As NonFungible itself reports, the average price of an NFT has increased ten fold in the past six months.
“The average price of NFTs spiked quite astoundingly in February, peaking at around $4 000 in mid-February. Since then, record sales continue to follow, averaging almost $1 500,” writes Nonfungible.
For reference, the average price of an NFT in October 2020 was $142.
Both Protos and NonFungible point out that collectible NFTs are proving resilient and looking at individual marketplaces reveals a very different story to the one we see across the market.
Cryptopunks, SuperRare and HashMasks are all seeing gains in their projects and while the amount they make from sales is down compared to March, this could just be the market correcting itself.
This makes more sense than NFTs simply disappearing from the face of the planet. While Beeple’s $69 million NFT sale earlier this year is great news for digital artists, that’s not a viable target for most people. Hell, paying $4 000 for a piece of digital art isn’t viable for most.
Speaking frankly we love the concept of NFTs. Smaller artists being able to sell their work on platforms that make it easy for buyers to find them is fantastic.
What we will say is that the madness surrounding NFTs has died down and we should start seeing fewer services that are here today and gone tomorrow.
Of course all of this could change in an instant, that’s just the nature of crypto.
[Image – CC 0 Pixabay]