NFTs are no more? Really?

  • On Sunday, just $52 million worth of NFTs were traded on the largest NFT marketplace, OpenSea.
  • Lower acquisition means precipitous drops in NFT values. After experiencing a mammoth initiation price of $400,000 in April, BAYC is now selling half that.
  • To compound the anarchy, NFTs are falling along with Bitcoin and Ethereum. BTC fell below $28,000 for the first time since 2018.

OpenSea has witnessed a decline in trading volume

The largest NFT marketplace, OpenSea, saw weak sales on Sunday, with just $52 billion in non-fungible tokens traded on the platform. This is the minimum trading volume the market has seen since December and a subsequent decline starting in April, when trading fell below $100 million on a few occasions.

Lesser buying means precipitous drops in NFT prices. After seeing a significant valuation of $400,000 in April, the Bored Ape Yacht Club price has been cut in half. Similar patterns have also been seen in some major collections. MoonBirds recorded $45,000 from its April high of $110,000, while Reese Witherspoon-backed World of Women is $10,000 from $34,000.

To compound the anarchy, NFTs are plummeting alongside crowned crypto asset Bitcoin, and so is Ethereum.

There is a component of overzealous confirmation bias here. People cite a drop in the total number of NFTs purchased as non-fungible tokens purchased as evidence of the big drop, unaware that money is moving to a minor group of exploding NFTs instead of being distributed among thousands of inexpensive NFTs.

In April, traders, for example, acquired on Bored Ape for $400,000 instead of separate NFTs worth $4,000 per coin.

If NFTs were up, they would be pretty much the only thing that was up. The Nasdaq was down 20% the previous month. Unlike on this day of the previous month, Amazon and Apple were down 30% and 12.5% ​​respectively.

Bored Ape Yacht Club’s aforementioned price has been halved, putting it in the position where Netflix is. Woes compounded by the loss of first-time subscribers, the streaming mammoth’s share price halved from the previous month.

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There is still a lot of life in NFTs

NFT fortunes are in many ways encapsulated by Otherside, an upcoming metaverse associated with Ape NFTs and created by Yuga Labs, founders of the Bored Ape Yacht Club. The organization landed the first airdrop on April 30 where it experimented with $1 billion in virtual land deeds in just 10 days.

It’s hard to say that NFTs are actually dead when the biggest trading ever has happened in the past couple of weeks.

Nancy J. Allen
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