The NFT sector has taken a strong hit while losing the majority of value as investors’ interest plunged following the cold market conditions this year. Bored Ape Yacht Club got involved in a lawsuit where some celebrities allegedly promoted the collection to pump up its value.
Bored Ape Ecosystem Gains
According to Cryposlam, a data aggregator, the NFT market saw rising sales volume this month. BAYC NFT collection stays at top with over $74 Million in trading volume. Mutant Ape Yacht Club (MAYC) increased by 71.5% while the club’s loyal counterparts, Bored Ape Kennel Club, gained 224% in their volume.
While Ethereum still holds the title of dominant blockchain in the NFT arena, others are trying hard to come up in the market. Still most of them are seeing plummeting volume in their ecosystem. Activity on Solana has declined by over 40%, though it has a minor effect on the sales in a month. ImmutableX (IMX), which joined forces with GameStop (NYSE: GME) for an NFT marketplace this year, also failed to register positive returns in the market.
Cardano (ADA) lost over 36% activity in a month, while Flow Blockchain (FLOW) declined by 24.5%. Earlier this month, Avalanche (AVAX) announced that they are involved in some technical advancements, have lost over 30% in their sales volume. Tezos, the official partners of Manchester United Football Club, witnessed half the trading volume slashed in a month.
NFT Creators Stepping “Out of The Block”
According to Chainalysis data, NFTs generated around $19 Billion during January and March 2022, but has shed almost 90% of the value now. Financial Times says that the downturn has led the creators to seek alternate ways other than blockchain to generate value from the art form. Some experts believe that “NFT was a bubble that burst and may not happen again.”
Doodles project recently hired Pharrell Williams, a musician and producer, as their chief brand officer. The collaboration is working on an album and video series. Similarly, Pudgy Penguins collection has entered the real world with physical goodies and sharing part of profit to the NFT holders.
Yuga Labs, creators of the Bored Ape universe, released their IP rights this year. This allowed the holders to use the virtual collectibles on their own accords. The BAYC collection remains the most popular NFT collection among the celebrities with the likes of Neymar Jr, Eminem, Jimmy Fallon and more. A restaurateur has dedicated his restaurant, Bored and Hungry, to the virtual collectibles.
The market is also experiencing increasing illicit activities. Harpie, an on-chain firewall protocol, recently revealed a fraud associated with OpenSea. The attackers were using fake web addresses to lure the investors into a trap where clicking on a hostile link would initiate the NFT transfer for free.
Source: https://www.thecoinrepublic.com/2022/12/27/nft-market-shows-some-hustle-global-sales-volume-rises-by-almost-10/