6NFTs sales totaled just over $1 billion, compared with January’s peak of $12.6 billion
As NFT sales hit a 12-month low in June, it appears to be caught up in the cryptocurrency chain Reacting.
NFT gives someone ownership of a unique digital item (usually a piece of virtual art), even if the item can be easily copied. Ownership is recorded on a digital, decentralized ledger called a blockchain.
Sales of NFTs totaled just over $1 billion (£830 million) in June, marking their worst performance since the same month last year, when sales totaled $648 million, according to cryptocurrency research firm Chainalysis. Sales peaked at $12.6 billion in January. Ethan McMahon, an economist at
Chainalysis, said: "This decline is certainly related to the broader slowdown in the cryptocurrency market. Times like these inevitably lead to consolidation within the affected market, and for NFTs, we may see that before reaching prominence. A pullback in NFT collections and types. "
The cryptocurrency market, which was worth about $3 trillion last November, is now worth less than $1 trillion.
NFTs like Bitcoin rely on blockchain, the first decentralized ledger used to track ownership of cryptocurrencies to record who owns them and allow them to be traded. Most mainstream NFT projects are based on the Ethereum blockchain, which is maintained through a carbon-intensive system called proof of work.
6 Monthly NFT sales hit 12-month low
Data source: chainalysis
At its peak, the NFT market attracted a large amount of funds, and even the NFT of Twitter co-founder Jack Dorsey’s first tweet was worth $2.9 million. Visual artist Beeple's digital collage sells for $69 million; 'Play and earn' video game Axie Infinity's primary token value reaches $9.75 billion; The Coca-Cola Company By selling digital items, like traveling through the Metaverse of custom coats, raising more than $575,000.
According to data from Chainalysis, NFT sales peaked in January this year. In April, the person who had purchased the Jack Dorsey NFT tried to resell it a second time, but he gave up because the buyer was willing to pay up to $14,000.
However, investor demand for the so-called blue-chip NFT series has been strong, according to data from DappRadar, a company that tracks NFTs and blockchain-based video games. Pedro Herrera, director of research at
DappRadar, said the price of the cheapest NFT in Bored Ape Yacht Club has dropped just 1% over the past month to $90,000. He said: " blue chip collectibles have performed significantly better than the vast majority of NFTs."
According to Chainalysis, NFT sales reached $40 billion last year, and the total in 2022 has exceeded this number, exceeding $42 billion. Sales in January and February account for more than half of the 2022 total so far.
Cryptocurrency markets have come under pressure amid broader stock market volatility as investors worry about rising inflation and rising interest rates, dampening appetite for riskier assets including tech stocks and digital assets. interest. The collapse of
Terra, a so-called stablecoin whose value is supposed to be pegged to the U.S. dollar, has also shaken confidence in crypto assets, and there has been trouble for crypto-related financial institutions such as Celsius Network, a lender that has Withdrawals suspended.
