NFTs Hammered by Crypto Market Downturn, Sales Down 92% Since January High

NFT sales have hit a 12-month low amid the turmoil of the cryptocurrency market crash. Sales of NFTs totalled just over US$1 billion in June, compared to a market peak of US$12.6 billion in January.

Has the Bubble Finally Burst?

June sales of NFTs amounted to their worst performance since the same month last year when sales were US$684 million, according to data from research firm Chainalysis. The cryptocurrency market, which was worth US$3 trillion in November 2021, has dropped below US$1 trillion and the decline in NFTs is linked to crypto’s broader malaise:

It is important to note that dollar volumes were so high given that prices of altcoins had been on the rise. In June, when the market crash occurred, the dollar value of traded NFTs plummeted along with the prices of the coins.

According to Chainalysis economist Ethan McMahon, “Times like this inevitably lead to consolidation within the affected markets, and for NFTs we will likely see a pullback in terms of the collections and types of NFTs that reach prominence.”

New Collections Launched Despite Downturn

In the period between May and June, 18,000 new NFT collections were launched despite declining interest:

OpenSea continues to dominate the space when it comes to NFT trading and remains highly favoured among investors. While other networks such as Solana have also fuelled the network, contenders such as LooksRare – which was only launched this year – stole market share from OpenSea, but only momentarily. OpenSea maintains more than 55 percent of all NFT volume recorded for June, while LooksRare accounts for 32.45 percent: