NFT The boom was supported by a bullish crypto ecosystem and positive investor sentiment, however, Bitcoin’s bear market had an adverse impact on the crypto ecosystem.
Non-fungible tokens (NFTs) are taking center stage in 2021 as artists, influencers, A-list celebrities, and the sports industry finally encounter a fan engagement tool that allows the public to profit from their success. However, the hype surrounding NFTs failed to take hold, as sales plummeted to one-year lows in 2022's relentless bear market.
The NFT boom that began in early 2021 has continued into May 2022, supported by a healthy and bullish crypto ecosystem and positive investor sentiment. However, Bitcoin ( BTC ) plummeted from its all-time high price into a bear market, adversely affecting the entire crypto ecosystem.
Number of daily NFT sales between June 2021 and June 2022
The NFT ecosystem had its worst performance of the year in June 2022, with daily sales falling to approximately 19,000 and a valuation of $13.8 million, equivalent to its The ecology has fallen back to the scale in June 2021.
Last year, a similar number of daily sales of NFTs was considered impressive as the nascent ecosystem saw mainstream implementations across a variety of use cases.
NFT Market Cap and Volume
As evidenced by data from nonfungible, the NFT ecosystem witnessed its highest daily sales of 224,768 NFTs worth $78.3 million on September 24, 2021. However, the largest transaction in U.S. dollar terms occurred on May 1, 2022, when 118,577 NFTs were sold for $780.4 million that day.
Some of the key factors negatively impacting NFT hype are falling ether (ETH) prices, lack of secondary market demand, and unrealistic gas fees. As a result, NFT market value has fallen by nearly 40% in the past three months, while losing more than 66% of trading volume, according to NFTGo.
Amid the bear market, crypto entrepreneurs including Changpeng Zhao "CZ" Zhao are helping governments explore use cases for NFTs in ID-ing citizens, and social media giant Meta's Facebook also recently announced support for NFTs for creators. plan. A spokesman for
Meta revealed that the rollout of NFTs on Facebook will be gradual, starting with select creators in the United States.
