The NFT market is not showing clear signs of recovery yet

The NFT market is not showing clear signs of recovery yet

user avatar

by Max Nevskyi

3 years ago


The cryptocurrency industry has been generating a lot of optimism among traders and investors in recent months. However, not all subsectors are showing bullish movements to the same extent as the major digital currencies. For instance, the non-fungible token (NFT) market has not demonstrated the same level of efficiency and is showing only initial signs of recovery.

CoinDesk analysts reported that the price of Ether (ETH) has risen by approximately 70% since the beginning of 2023. Meanwhile, the Nansen NFT-500 Index, tracking the value of the 500 largest NFTs, has decreased by 50% over the same period when measured in Ether. In terms of US dollars (USD), this indicator has dropped by 16%.

The Blue-Chip 10 Index, reflecting the value of the most well-known NFTs such as CryptoPunks, Bored Ape Yacht Club (BAYC), and others, has also declined. Its decrease was approximately 44% relative to ETH. As for the evaluation in US dollars (USD), the losses were more moderate, amounting to only 1.7%.

Researchers note that one of the largest NFT markets - OpenSea, has also shown discouraging results. According to DeFiLlama data, in January 2022, the platform was earning $387.48 million monthly in fees and had a net income of $120.45 million. Now, these figures have decreased to $6 million and $1.39 million, respectively.

NFTs have gone through their first market cycle but have not yet reached a new inflection point. This technology has not attracted as much interest as was the case with decentralized finance (DeFi) and Uniswap. Many innovations are being created to expand the possibilities of using NFTs. This is also partly related to the fact that prices are negatively correlated with the value of ETH in US dollars.says Nick Rak, Chief Operating Officer of ContentFi.

Jason Fang of Sora Ventures emphasized the importance of the growing popularity of Bitcoin ordinal numbers and the Ordinals protocol. He noted that this not only represents a significant step in the use of Bitcoin but also becomes a center that unites various cryptocurrency communities. Fang pointed out that projects like Stacks, BSV, Rootstock, and even Starkware usually rarely interact with each other. However, their representatives are currently actively exploring opportunities for collaboration and development.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

ZeroBeta and Lynq Integrate Tokenized Treasury Holdings for Enhanced Institutional Finance

ZeroBeta and Lynq have announced a new integration that connects tokenized Treasury holdings to institutional borrowing and trading, allowing eligible assets to be pledged as collateral while accruing interest.

user avatarEmily Carter

Spiko Announces $238 Billion in Tokenized Investment Fund

Spiko has reported a remarkable $238 billion in its Amundi Overnight Swap Fund (SAFO), emphasizing the rising significance of tokenized investment products in business cash management.

user avatarTomas Novak

Kraken Launches New Funding Route for USDG on Arbitrum One

Kraken has launched a new funding route for Global Dollar (USDG) on Arbitrum One, enhancing the ease of transactions between the exchange and blockchain wallets.

user avatarKaterina Papadopoulou

SAT Japan Introduces Stablecoin Payment Option for Vehicle Exports

SAT Japan has launched a stablecoin payment route through TripleA, enabling cross-border car purchases using USDT and USDC.

user avatarMaya Lundqvist

Ripple and Water.org Enhance Partnership for Efficient Water Financing

Ripple and Water.org are expanding their partnership to leverage payment and stablecoin infrastructure aimed at improving water and sanitation financing.

user avatarLeo van der Veen

Taurus Expands Stellar Integration for Institutional Clients

Taurus has enhanced its Stellar integration to support smart contract-based assets for institutional clients.

user avatarLi Weicheng

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.