- Non-fungible tokens sector is struggling amid the crypto winter.
- Year 2021 remains the best year for space considering the 210X boom in sales.
- The NFT sector has a market cap of 17.3 Billion USD at the time of publication.
Crypto Winter Taking a Toll on NFT Market
In 2021 the non-fungible tokens displayed a great potential concerning the sales volume, pushing the people on edge of their seats. Several investors who were not so sure about the cousin sisters of cryptocurrencies, started throwing money in the sector. But the momentary plunge never returned after shedding light on popular NFT collections including Bored Apes Yacht Club (BAYC), CryptoPunks, MeeBits and more.
Looking at the recent stats offered by Dune Analytics, the sector inhabitants appear to be roaming the crypto plains after climbing valleys during the beginning of the year. The NFT market volume nearly got reduced to ashes, decreasing by almost 100% to 526.7 Million during September 2022 in contrast to 17.1 Billion USD in January 2022.
Breaking down the volume with respect to the NFT marketplaces, LooksRare was on top of the charts with 11.1 Billion USD in trade volume during January 2022, followed by OpenSea (5.8 Billion USD) and Larva Labs (122 Million USD). Markets went on to become Ant-Man from the Giant-Man in September 2022 where LooksRare’s sales plunged to 152.7 Million USD only. OpenSea remained above with 349 Million USD in the month.
Apart from trading volume, total transaction count in the sector reduced from 4,997,913 In January 2022 to 1,758,654 in September 2022.
According to Dune Analytics, OpenSea trading volume tops the chart, bagging 40 Billion USD in total. LooksRare stays just behind the biggest NFT marketplace in the race with 26.7 Billion USD, followed by LarvaLabs — CryptoPunks NFT creator — with 2.4 Billion USD.
Taking the total transaction count into account, LooksRare sits on the top with 314.1 Million transactions, followed by OpenSea with 37.6 Million, Rarible with 300.3K and LarvaLabs attracting 21.2K transactions on the network.
Since crypto winter’s arrival, the non-fungible token sector has not witnessed any sizable surge in the space. Yuga Labs’ Otherside metaverse remained talk of the town during this period. Otherdeed — land plots in the metaverse — experienced a quick sell-off upon the launch, having surpassed NBA Top Shot in August 2022 to become the quickest collection to gather over 1 Billion USD in all-time sales.
During 2017, non-fungible tokens were getting a weekly sales of 100, which then escalated to around 80,000 in 2019. The market surfed the tsunami in 2021 after the sales volume raised to 176 Million USD in May 2022 from just 4.8 Million USD during 2021.
With the emerging use cases of non-fungible tokens around the globe, people and organizations are showing great interest in them considering their massive growth in 2021.
Source: https://www.thecoinrepublic.com/2022/10/03/nft-market-analysis-can-the-sector-reduced-to-ashes-become-a-rising-phoenix/