NFT sales hit 12-month low
Sales of immovable tokens reached just over $ 1bn in June, compared to a record high of $ 12.6bn in January.
Unbreakable tokens have been swept away in the cryptocurrency crash as transactions reached less than 12 months in June.
NFT grants ownership of a unique digital object – usually a piece of visual art – to someone, even if the object can be easily copied. Identity is recorded in a digital, widely distributed book known as the blockchain.
Sales of NFTs reached just over $ 1bn (£ 830m) in June, according to crypto research company Chainalysis, its worst performance since the same month last year when sales were $ 648m. Sales reached a record high of $ 12.6bn in January.
“This decline is certainly related to the broader decline in crypto markets,” said Ethan McMahon, an economist at Chainalysis.
“Times like this definitely leads to the consolidation of affected markets, and in NFT we will probably see a decline in the collections and types of NFT that reach prominence.”
NFT sales hit 12-month low
The cryptocurrency market, which cost about $ 3tn last November, now costs less than $ 1tn.
NFT relies on a blockchain – a separate platform that was first used by bitcoin to track cryptocurrency ownership – to record its owner and allow it to be sold. Most are based on the Ethereum blockchain, which is stored in a carbon-intensive system called performance proof.
At its peak, the NFT market was priced at $ 2.9m to receive the first tweet token made by Twitter founder Jack Dorsey. People’s digital studio sold for $ 69 million; Axie Infinity’s main video game token “play for a win” has hit a total of $ 9.75bn, and Coca-Cola has raised more than $ 575,000 by selling digital items such as a custom jacket to be worn on the metaverse.
However, the demand for so-called NFT blue-chip collections has risen, according to DappRadar, a company that tracks NFTs and blockchain-based video games.
The cheapest price of NFT at the Bored Ape Yacht Club dropped by only 1%, to $ 90,00o, last month, according to DappRadar research chief Pedro Herrera. “Blue collections do much better than most NFTs,” he said.
NFT sales reached $ 40bn last year and the 2022 price has already exceeded that, more than $ 42bn, according to Chainalysis. Sales in January and February accounted for more than half of the 2022 value to date.
The cryptocurrency market has been under pressure amid a wide range of stock market volatility, amid fears of inflation and high-interest rates, which have eradicated the desire for risky assets combining technical and digital assets.
Confidence in crypto assets has also been shaken by the collapse of Terra, a so-called stable currency that should have been linked to the US dollar, and problems with crypto-related financial institutions such as the Celsius Network, the lender suspended suspension.
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