Has the NFT bubble popped up yet?
What was once a red-hot market driven by FOMO during the 2021 crypto bull market is now just a trickle, with trading volume on the most popular NFT market, OpenSea, down 99 % in less than four months.
On May 1, OpenSea processed a record $2.7 billion in NFT transactions, but on Sunday the market only recorded a value of $9.34 million, according to the report. data compiled by DappRadar. The company recorded 24,020 users on Sunday, about a third less than when it hit a record number of transactions in May.
The massive drop in volume on the NFT market coincided with the drop in cryptocurrency prices. The most popular cryptocurrency, Bitcoin, has dropped nearly 57% since the start of the year to $20,276. The second most popular cryptocurrency by market capitalization, Ethereum, has dropped about 59%, to $1,528, over the same period.
When trading volume and cryptocurrency prices have declined during the so-called “crypto winter” downturn, the floor of the most popular NFT collections, which indicates the lowest price an NFT in collection is on sale, also plummeted.
The floor price of the most popular NFT collectibles, Bored Ape Yacht Club, fell 53% to 72.4 Ether (about $110,000) on Monday, from a high of 153.7 Ether on April 30, according to CoinGecko. Another popular NFT collection, CryptoPunks, is down 19% from its July peak.
The decline of cryptocurrency has left many retail inventors reeling. A study from the Pew Research Center last week found that 46% of Americans have put their money in crypto said their investments did not meet their expectations.
While crypto has become increasingly prominent over the past year, Pew found that only 16% of U.S. adults have invested in crypto, close to the number that said they invested in September. last year.
Register Fortune feature email list so you don’t miss our biggest features, exclusive interviews and surveys.
