• 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

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.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Coinbase Enhances User Experience with Smart Wallet Verification Upgrade

chest

Coinbase has launched a Smart Wallet verification upgrade aimed at simplifying multichain dApp access for users.

user avatarAyman Ben Youssef

Ethereum's Future Depends on Institutional Interest and Market Signals

chest

The future of Ethereum hinges on institutional interest and market signals as traders await proof of sustained demand.

user avatarTando Nkube

Ethereum Market Dynamics Amid ETF Launch Speculation

chest

Ethereum's market is showing signs of caution as traders become more selective ahead of potential ETF launches.

user avatarKofi Adjeman

Market Signals and Bitcoin's Recovery

chest

Bitcoin's recovery is supported by ETF inflows and a calmer derivatives market, but requires confirmation from spot demand.

user avatarNguyen Van Long

Kraken Expands Support for Arbitrum-based Stablecoins

chest

Kraken's recent update to support Arbitrum-based stablecoins marks a significant shift in the exchange's approach to Layer 2 networks, allowing for more efficient transactions and addressing high fees on Mainnet Ethereum.

user avatarSatoshi Nakamura

SEC Moves Towards Formal Crypto Regulation

chest

The SEC is moving towards formal rulemaking for cryptocurrency firms to provide clearer guidelines and reduce uncertainty in the industry.

user avatarJesper Sørensen

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.