The hype and strong growth surrounding non-fungible tokens (NFT) started sometime early last year and continued until May 2022. This hype came in the glory days of the cryptocurrency market and managed to grow due to the positive sentiment in the market. However, we now see that bitcoin (BTC) is not going so well anymore, the NFT market is falling.
NFT trading volume slumps
The NFT ecosystem has been the worst performer so far in June compared to the other months this year. In total, only 19,000 NFTs have been traded with an estimated value of $13.8 million. We last saw such low volume a year ago in June 2021. Non-fungible tokens became extremely popular in the year 2021. Everyone seemed to have a picture of a monkey or some other crazy little man. Eventually, the sports industry also got involved in making certain fan tokens. This hype turned out to be less and less in 2022 after the hard decline in crypto that we saw across the entire market.
The NFT ecosystem saw her highest number sales on September 24, 2021. On this day, approximately 224,000 NFTs were sold with a total value of approximately $78 million. Still, we saw that the best day for NFTs was May 1, 2022. In total, more than 118,000 NFTs were sold for $780 million in total. Obviously, NFT traders took advantage of the dip to stock up on some NFTs.
Will the interest return?
A number of possible reasons for the decline in NFT selling is the falling ethereum (ETH) price, the high ethereum transaction costs, or gas parties, and low interest from new traders to enter the NFT market. because of this we see that the market value of the NFT sector has fallen by 40%. Interest in the NFT sector may pick up again after the prices of bitcoin (BTC) and ethereum recover cautiously.