By Alicia Maher
The NFT market follows the same pattern exhibited by the crypto market as prices and sales volumes nosedived to one of their lowest levels, which may signal the entire NFT market’s cool down.
Yuga Labs NFT collections have experienced a sudden downturn in sales over the past 24 hours as the leading NFT also takes a slice of the market correction for the day.
Otherdeed experienced a 50% decline, while the Mutant Ape Yacht Club (MAYC) also plunged by 46%, and the Bored Ape Yacht Club (BAYC) came last as it shed 25% in the current market situation.
Notably, the past 24 hours have seen the entire NFT market mirror the price action of Yuga NFT collections, where transaction volume has spiraled down to 31%, a reduction to $113 million.
However, the price of NFTs failed to follow suit as the industry’s total market cap dropped significantly to $19.5 billion over the same period.
How Do the Collections Fare?
The said NFT collections formed part of the most traded NFTs globally. Except for Otherdeed, each group has shed roughly 50% of its value over the past week, which indicates that the NFT market is beginning to cool off.
Furthermore, only three appear in the green zone among the top 10 NFT collections in sales volume. A further breakdown of the collections shows that CyberBrokers occupy the second spot and have seen an increase of 4,124%; Azuki sits in fifth place with a 7.5% increase. Doodles are in ninth place with a 22.74% increase, as revealed by the NFT market tracking platform, CryptoSlam.
Meanwhile, in addition to the NFT collections created by Yuga Labs, which are all hosted on the Ethereum network, the sales volume of eight out of the ten active blockchains has also suffered considerable losses over the past couple of days.
The overall sales volume of the NFTs is down by 22.5%, except for Polygon and Tezos, whose sales volumes have increased by 16.5% and 58.8%, respectively. According to the CryptoSlam data.
The number of active market wallets that have performed an NFT transaction in the past few days has been dropping steadily alongside the number of buyers since this month.
This scenario signals another glooming market situation as further data from the NFT market analysis tool, NonFungible, shows an 84% decline in the number of unique NFT buyers.
Notwithstanding the slow start to NFT market performance in 2022, analysts remain bullish on the prospect of the NFT industry by predicting further growth in the next few years to come.
Moreover, the NFT space has a huge prospect for further expansion when the demand for digital art comes to the fore.
The adoption of NFT by mainstream influencers and content creators, the gaming space, and other notable mainstream sectors will drive demand for digital art collections in the future, thereby propelling the NFT industry to those enviable heights in the next couple of years.