The NFT Market is Down 92% From Last Year

Digital Asset

After having peaked in 2021, the market for non-fungible tokens is down by 92%. In the wake of the market crash, many prominent NFT whales have experienced severe losses. For example, crypto Entrepreneur Sina Estavi bought an NFT of Twitter CEO Jack Dorsey’s first tweet for $2.9 million in 2021. In 2022 he tried to auction the NFT off at $48 million. The auction never gained much traction, and the bids that did come in topped out at a disappointing $280. Estavi’s story is just one of many in recent months.

A Market in Decline

In September of 2021, the NFT market hit its peak, with 225 million total trades taking place in a single month. In May of 2022, this number had fallen to just 19,000 in one week. Also in May, Coinbase launched a new NFT marketplace, and received only 150 signups on launch day, this is perhaps the biggest indicator that the NFT market is as good as dead.

Most people have always been skeptical about NFTs, due in large part to the very nature of ‘owning’ digital goods. The rampant rise of cryptocurrency related scams, and theft within the market has only worsened the larger perception around digital assets.

In April of 2022 Bored Ape’s official Instagram was hacked, leading to $3 million in crypto assets being stolen. Before that, $1.7 million was stolen directly out of users’ wallets on OpenSea.

Crypto Bulls Remain Hopeful

Still, bullish investors such as Estavi are confident that the NFT market will eventually see a return to form. Estavi believes that the NFT market still has a long way to go, and that the highs and lows we’re seeing now are simply growing pains.

Bored Apes recently announced their own metaverse-style game, where holders will be able to use their Bored Ape NFTs as Avatars in a virtual landscape. Whether or not this news bolsters the market in any meaningful way remains to be seen.

Sources:

https://www.zdnet.com/finance/blockchain/bored-ape-yacht-clubs-exclusive-otherside-metaverse-set-to-drop-this-weekend-heres-what-you-need-to-know/

https://www.theverge.com/2022/2/20/22943228/opensea-phishing-hack-smart-contract-bug-stolen-nft

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