The recent general crypto winter continues to impact many investors, institutions, and crypto-related firms. The crypto market meltdown began sometime in June and has left many non-fungible tokens shedding more than 70% of their value.

The market winter has not even spared the flagship crypto Bitcoin, which has traded under 22,000 levels for months. Among the most impacted crypto firms include Dapper Labs, which has announced laying off more than 20% of its staff over the same concerns.

According to reports, Dapper Labs has lost more than 90% of its NBA Top Shot sales volume from February 2021 to October 2022. The NFT incubation firm amassed more than $224 million in sales volume last year compared to just $2.6 million this year.

Dapper Labs Overview

Dapper Labs is the creator behind the popular blockchain-powered video game CryptoKittles, the NBA, and Flow, a blockchain network supporting decentralized applications at scale. The primary objective of Dapper Labs is to provide collectible and tradable basketball highlights using non-fungible tokens.

The ongoing NFT market trend seems to have hit Dapper Labs hard to the point that the company has decided to drop some of its staff members. On November 2, the company revealed that it would reduce its staff capacity by at least 22%.

According to the firm, the decision is a pretty tough one. Nonetheless, in a short statement, Dapper Labs maintained that the action is reasonably necessary for the long-term success of its community and business.

The NFT Market Health

It’s worth noting that the nascent NFT market primarily benefited from crypto price gains and high-risk appetite among investors in 2021. Nonetheless, the market has suffered heavily this year, especially since the ongoing general crypto meltdown began in June.

According to Dapp Radar, the third quarter of 2022 saw $3.4 billion in NFT sales, down from $8.4 billion the previous quarter and $12.5 billion at the market’s peak in the year’s first quarter.

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