• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M
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

2 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.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

UBS Reports Significant Profit Growth and Strategic Acquisitions

chest

UBS reported a 53% increase in profits last year and acquired Credit Suisse, strengthening its position in the banking sector.

user avatarMiguel Rodriguez

UBS Group AG Expands into Tokenized Services and Crypto Access

chest

UBS Group AG is developing tokenized services and crypto access for clients, as confirmed by CEO Sergio Ermotti during the Q4 earnings call.

user avatarRajesh Kumar

Senate Democrats to Hold Meeting on Crypto Market Structure Amid Legislative Delays

chest

Senate Democrats are set to hold a closed-door meeting to discuss the crypto market structure amid ongoing legislative delays.

user avatarArif Mukhtar

CFTC Chair Michael Selig Pushes for CLARITY Act to Define Crypto Regulations

chest

Michael Selig, the newly appointed CFTC Chair, advocates for the CLARITY Act to establish clear regulations for the crypto market.

user avatarLuis Flores

TMTG to Launch Digital Token for Truth Social Shareholders

chest

TMTG will soon issue a nontransferable digital token for Truth Social shareholders to engage them and leverage the cryptocurrency market.

user avatarMaria Gutierrez

Microsoft's Stock Declines Despite Strong Earnings Report

chest

Microsoft's shares have dropped 10% following a strong earnings report, raising concerns about investor expectations for its cloud service.

user avatarAndrew Smith

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.