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Some are announcing the demise of the nonfungible token sector because to the dramatic fall in NFT sales and wallet activity.
The nonfungible token wing of the crypto sector has fallen even faster than the larger market in the last month or two, with sales of NFTs down 90 percent from their high in early May.
Data provided by Protos paints a picture of an NFT market in the midst of implosion as sales across all categories continue to decline rapidly.
After selling $102 million worth of NFTs on a single day on May 3, just $19 million worth were sold in the previous week. Over $170 million in NFTs were sold in the seven-day span on each side of the market high, representing a nearly 90 percent drop since then.
The number of NFT wallets that exhibit any trace of activity on a daily basis has likewise dropped by 70% since early May, from 12,000 to 3,900. NFT sales and wallet movements were down across the board, including gaming, decentralised finance, collectibles, art, utility, metaverses, and sports.
Crypto collectibles were the most popular NFTs during the market’s high, and they continue to be so now, with a 66 percent drop in the last month. The second-most popular NFT category is sports tokens, which have shown the most resistance throughout the market slump, with active wallets falling by just 55% since early May.
According to NonFungible.com statistics, collectibles (CryptoPunks) and sports (Sorare) tokens processed the greatest volume in the last seven days, accounting for over 40% of overall NFT volume.
Analysts at Protos quickly concluded that the NFT bubble had already burst. They wrote, “All things considered, the data suggests the NFT bubble lasted just four months — and it popped about this time in May.”
When NFTs emerged as the crypto space’s next trend early this year, they sparked equal parts anticipation and bewilderment, following in the footsteps of the tokenization movement (see Dentacoin), the ICO phase, and DeFi and yield farming. NFTs are (or were) either the trendiest new technical wonder to come from the blockchain world or an awful blight on the crypto world, providing little value and plenty of noise, depending on one’s capacity for optimism.
Regardless of one’s point of view, the clamour appears to be fading down.