As a seasoned analyst with over two decades of experience in the ever-evolving world of digital assets and blockchain technology, I have witnessed the rise and fall of various trends within this dynamic landscape. The NFT market, which captured the imagination of countless investors and enthusiasts alike, has undeniably undergone a significant correction since its peak in early 2022.
2020’s final months and all of 2021 saw Non-Fungible Tokens (NFTs) taking over headlines, reaching their height in early 2022. By as early as November 2020, the global sales volume of NFTs had already surpassed $8 million.
NFT Market Down 92% From January 2022 Peaks: Best Time To Invest?
Approximately 13 months after that point, the value had ballooned to more than $6 billion. This significant increase was fueled in part by the surplus market liquidity resulting from historically low interest rates. Owing to this lenient monetary policy, Bitcoin, Ethereum, Solana, and even the BNB Chain networks experienced substantial growth.
Two years from now, NFTs find themselves in a precarious state and battling difficulties. The trend from 2022 to 2023 has been a steady decline, as indicated by CryptoSlam data. As I write this on October 9, the global sales volume for all NFTs was approximately $100 million in early October.
Compared to the record-breaking sales in January 2022, where iconic NFT collections such as Bored Ape Yacht Club (BAYC) and CryptoPunks fetched millions of dollars each, this figure is quite insignificant.
As a researcher, I find myself intrigued by the current state of Non-Fungible Tokens (NFTs), which have seen a significant dip in value. However, one analyst at X has expressed an optimistic viewpoint, suggesting this downturn might just be the opportune moment to construct and invest in these digital assets. With the market plummeting 92% from its January 2022 highs and returning to levels last seen in late 2020, this analyst considers investing during such a period as the epitome of contrarian thinking and potentially the shrewd move.
Regardless, choosing to invest heavily at this moment, and perhaps aiming for the “ideal” lowest point, can be quite daring. As indicated by CryptoSlam’s data, the number of distinct purchasers and sellers is decreasing. Although prices rebounded from September 2023 to early Q1 2024, the enthusiasm seems to be dwindling.
As an analyst, I observed a significant decline in our sales figures last September, dropping to approximately $296 million compared to $373 million in August. This represents a nearly 70% plunge from the impressive $1.7 billion recorded just three months prior in December. If the current trend in crypto prices persists, it seems reasonable to anticipate that our sales will likely experience further strain.
Impact Of Crypto Prices And Regulations
As reported by Cryptoslam, it’s clear that Ethereum dominates the NFT market in terms of activity. A staggering $44 billion worth of Non-Fungible Tokens have been exchanged on Ethereum, while only $5.8 billion and $1 billion have been transacted on Solana and Flow respectively.
If the price of Ethereum falls beneath $2,100 and its lowest point in August, it’s likely that we’ll see an increase in the chances of reduced NFT activity on the platform.
Apart from price concerns, the industry is experiencing increased scrutiny and potential legal action from the U.S. Securities and Exchange Commission (SEC). OpenSea was issued a Wells Notice towards the end of August, which indicates that the regulatory body may be planning to file a lawsuit against them.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- EUR ILS PREDICTION
- USD COP PREDICTION
- USD PHP PREDICTION
- LBT PREDICTION. LBT cryptocurrency
- SHI PREDICTION. SHI cryptocurrency
- Best JRPGs That Focus On Monster Hunting
2024-10-10 06:11