The NFT market has crashed over the last month, with sales in almost every category almost entirely drying up.
NFTs have reached their peak, with $102m reached in a single day. The crypto collectibles market makes up $100 million of those sales.
According to data analysed by Protos, only $19.4 million in NFT sales were processed in the past week. Of the $170 million in NFTs which surrounded the top of the market, it’s a near 90% collapse.
Although some NFT collectibles like CryptoPunks and Hashmarks are still going strong, there looks to be a shift to metaverse NFTs.
Metaverse?
Not only is it a term from a Neal Stephenson sci-fi novel, the metaverse is actually being built. Today, the metaverse is a shared virtual space where people are represented by digital avatars. This world constantly evolves based on the decisions made by those existing within it. Nokia’s head of trend scouting, Leslie Shannon, talked about the importance of the metaverse in a recent VRARA’s Global Summit. During this talk, she stated that,
“The spatial internet is the culmination of everything that AR and VR is developing today. It’s the idea of taking information about things, locations, or historical events and actually locating that information out there in the world where it’s most relevant.” Augmented reality and virtual reality will be the ways you will see this information layer.
Source: Forbes
NFTs which are linked to the so-called metaverse are like digital real estate and virtual artifacts. They are currently outselling tokens linked to crypto art. The number of active NFT wallets has dropped from over 12,000 at its peak to only 3,900 as of yesterday.
Crypto-Art Is Old News
3m worth of crypto-art has been sold over the last 7 days and 3.3m in metaverse NFT’s has changed hands. Those numbers include primary and secondary market sales. Using daily data, primary and secondary markets for crypto collectibles are currently the largest ecosystem for NFT sales. The data suggests that the NFT bubble lasted just four months and it popped approximately this time last May.
Crypto Trading in China
According to Bloomberg, Chinese traders are choosing to support over-the-counter (OTC) desks despite recent government warnings. China also warned that customers have “no protection” from losses incurred from cryptocurrency trading and mining. Domestic crypto exchanges are currently banned in China and have been since 2017. Announcements are made to deter crypto traders but unfortunately, they seem to have the opposite effect.
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