Markets are dominated with optimism due to the rise in price of Bitcoin (BTC) or Ethereum (ETH), but the market has also seen a decline. non-fungible token The (NFTs) market is experiencing a decrease in popularity. The popularity of NFTs has been declining recently. These include collectibles and digital artwork recorded on Blockchains.
Bloomberg reportGoogle searches on NFTs are at their lowest level since 2021 when they first became mainstream.
NFT’s Popular Collections See Steep Declines
The NFT market is struggling. DappRadar research shows NFT market struggles. sales have decreased The first five months this year saw a rise of more than 6 percent, to $8.4 billion, compared to last year’s same time period.
The industry peaked in January 2022 with a staggering $17.2 billion of NFT sales in a single calendar month.
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It is also noted that sentiments surrounding NFTs shifted last month after the US Securities and Exchange Commission took steps to approve them. exchange-traded funds ETFs are a direct investment into Ethereum.
Some investors reportedly started reallocating their investment into ETH in anticipation of the approval.
Nicolas Lallement is the co-founder and CEO of NFT Data Tracker NFT price Floor. He explains capital rotation in cryptocurrency markets. Ethereum, for example, will likely continue attracting investors. market capitalPrice drops are also seen for NFTs.
Many popular NFT collection prices have dropped significantly this year. NFT Price Floor reported that these collections have seen a 40 to 50% drop in price year-to date. CryptoPunks (a collection created on the Ethereum Network) is currently trading at 2021 levels, and it has decreased by 29% compared to its previous low.
As a result, the price floor for collections like Bored Ape Yacht Club and Chromie Squiggle, which are based on Ethereum has decreased to about half what it was at its lowest point last year.
The Markets are about to Correct
Daniel Maegaard is a NFT collection collector who confirms the decline of most NFT collections after 2009. peak euphoria Observed in 2021. Maegaard sold a number of blue-chip digital works, such as those by digital artists XCOPY Hackatao Coldie.
Lallement claims that while some NFT collections have shown positive results over the past ninety days (such as XCOPY’s), the general trend indicates a market downturn.
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Magic Eden, a NFT platform, has proven to be resilient in the face of the NFT challenges. According to Sara Gherghelas of DappRadar, the platform is gaining in market share due to increased trading on its platform. Magic Eden registered a small increase, however. record volume Trading activity in April has declined since then.
The current market for non-fungible tokens is characterized by a drop in both popularity and price. Although some collections showed positive returns, the overall market sentiment indicates that NFTs will continue to be corrected.
After Bitcoin, ETH traded at $3.480. It has experienced a sharp 5% fall in the previous 24 hours.
Chart from TradingView.com, image from DALL.E
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Source: www.newsbtc.com