Ether Price Thrives With 60% YTD, While NFTs Face a 45% YTD Downturn

  • Ether is up by 60% year-to-date, but NFTs are falling behind, with a valuation decline of 44.82% YTD. 
  • Bored Ape Yacht Club’s sales volume declined by 99%.
  • Analysts suggest various reasons for the crash of NFTs, including the dearth of NFT production.

According to CoinGecko, the price of Ether is up by 60% year-to-date (YTD) as of this writing, benefiting from a market-wide price rally. However, ForkastLabs’ 500 NFT index, which measures the valuation of the top 500 NFTs, reveals that the overall valuation of non-fungible tokens (NFTs) has dropped by approximately 44.82% YTD. 

Concurrently, data aggregator CryptoSlam shows a 31% YTD plunge in the NFT sales volume, from $25.90 million to $17.80 million. 

Strikingly, the Ethereum-based NFT collection Bored Ape Yacht Club had an average of $53 million in sales volume in 2021. However, this sales performance has dropped by 99% in the past few months, plunging to $523,000 at present.

The floor price of notable collections like “The Merge” has even dipped from roughly 25 ETH to 1.1 ETH at present. Analysts suggest various reasons for the crashing of NFTs. This purportedly includes the dearth of NFT production, fluctuating gas fees, and the overall performance of cryptocurrencies.

In the same loop, data from the multi-chain TVL stats dashboard DefiLlama shows that OpenSea, the largest NFT marketplace, was clearing $387 million in fees monthly and $120.45 million in revenue in January 2022. This is a stark  contrast to its present aggregate fees of $6 million and $1.9 million in revenue in November 2023.

Moreover, Web 3.0 community Proof’s Research Director, who goes by NFTstats.eth on X, displayed OpenSea’s decline in market share.

NFTstats.eth noted that the decline in revenue is a combination of three things, which include the tanking of NFT volumes, the decrease of its market shares, and the margin compression in platform fees.

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Source: https://coinedition.com/ether-price-thrives-with-60-ytd-while-nfts-face-a-45-ytd-downturn/