When the crypto market was generally sluggish in the first quarter, some investors turned to non-fungible tokens, or NFTs, which outperformed most other digital assets at the time, in search of a haven. However, the stakes soon turned sour.
Prices of major NFT collections have crashed, amid widespread selling of riskier assets by more than 50% to popular ones in the past month, as investors grapple with warmer inflation, signs of a softer economy and the Federal Reserve’s tightening of its monetary policy. are concerned about.
Bored Ape Yacht Club, one of the most popular NFT collectibles, saw a minimum price of 88 ETH, or about $153,000, on Friday, up from 138 ETH on April 27, or over $390,000 based on Ether, or the lowest price in its commodities . The price at that time, according to data from CoinGecko.
It fell 60% or more than $237,000 during the past month.
The bearish can be partly attributed to Ether ETHUSD,
Tanks, as most NFTs are based on Ethereum, while the network’s native coin has lost 38% over the past month.
According to data from CoinDesk, there is a 25% drop during the same period.
NFT trading has also slowed down. According to data from DappRadar, OpenSea, the largest NFT marketplace, saw its trading volume fall by more than 45% to nearly $2.53 billion in the past 30 days, and the number of traders declined by 13% to 416,419.
“As risk-off sentiment pervades the markets, the farthest assets on the risk spectrum are crushed,” analysts at IntoTheBlock wrote in Friday’s notes.
Nevertheless, analysts are of the view that despite the prevalence of speculation, there has been continuous innovation in the NFT sector. “This is not the first time NFTs appear ‘dead’ and it will not be the last,” the analysts wrote.
Gamestop Corp. GME,
said on Monday that it has launched a digital wallet for cryptocurrencies and NFTs. Meanwhile, e-commerce company eBay Inc. ebay,
The company said earlier this week that it is launching its first collection of NFTs, which includes animations of athletes posing on a Sports Illustrated cover.
High-Profile NFT Auctions From Beeple, Madonna Flop Amid Crypto Crash
Too EY’s Blockchain Leader Says Ethereum Can ‘Take Everything’, and Will Not Have a Multi-chain Future
Credit: www.marketwatch.com /