NFT market data shows that the sales of non-fungible tokens (NFTs) in the third quarter have sharply declined, showcasing the continued impacts of the general crypto winter that began in mid June this year.
NFTs are blockchain-powered assets representing ownership of digital files such as images, videos, or an item in an online game. These digital assets came into the spotlight last year following the general market bull run that left many digital assets recording new all-time highs.
NFT Sales Plunge By 60% In Q3
Unfortunately, sales of these digital assets have slumped following the general market meltdown, which has left many non-fungible tokens shedding more than 70% of their floor prices. Even the largest cryptocurreny asset Bitcoin was not immune to this market correction, now trading at $19,000 versus $69,000 in November.
According to DappRadar, a blockchain data aggregator, the third quarter of 2022 saw $3.4 billion in NFT sales, down from $8.4 billion the previous quarter and $12 billion at the market peak in the first quarter of the year. These figures represent around a 60% decline in Q3,2022.
Since the NFT market benefited from crypto price gains and high-risk appetite among investors in 2021, these conditions have reduced sharply as central banks raise rates in the hunt for revenues to sustain economies amid the recent high inflation.
OpenSea Shrinks Further In September
The largest NFT marketplace, OpenSea, continues feeling the impact of crypto winter, felling for the fifth consecutive month in September. While commenting about September performance in a short interview with Reuters, Devin Finzer, the CEO of OpenSea, remarked:
“I think what’s unique about this environment is it’s the intersection of both the macro economic downturn and the crypto winter. The previous crypto winters were a little more isolated to just crypto prices so for that reason, I think it’s wise to be conservative about how long this could last.”
Before summarizing, the top executive maintained that the NFT marketplace is in a good spot financially. He is excited about the potential of NFTs in the longer term, describing the recent market downturn as a “building phase.”
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