The non-expendable cryptocurrency token wing has shrunk even faster than the overall market in the last month after NFT sales plummeted 90% since it peaked in early of May.
The data provided by Protos paints a picture of an NFT market amid the implosion as sales in all categories continue to decline rapidly.
After $ 102 million was sold on NFT in a single day on May 3, only $ 19 million was sold last week. NFTs worth more than $ 170 million were sold in the seven-day window on either side of the market peak, which equates to a decline close to 90% since then.
The number of NFT portfolios showing signs of daily activity has also fallen by 70% since early May, after falling from 12,000 to 3,900. NFT sales and portfolio movements declined across the full range of token categories, ranging from games, decentralized finance, collectibles, art, utility, metaverses and sports.
Cryptographic collectibles were the most purchased NFTs during the peak market, and remain so today, having declined by only 66% in the last month. The second most popular NFT category relates to sports tokens, which showed the greatest resistance during the market crash, with active portfolios having declined by only 55% since early May.
Current NonFungible.com data shows that collectible (CryptoPunks) and sports (Sorare) tokens have processed the largest volume in the last seven days, accounting for about 40% of NFT’s total volume.
Protos analysts were quick to conclude that the NFT bubble had already burst. They wrote: “Considering everything, the data suggest that the NFT bubble lasted only four months, and exploded by this time in May.”
NFTs caused equal parts of exaggeration and confusion when they emerged as the latest fad in cryptocurrency earlier this year, following in the footsteps of the tokenization movement (see Dentacoin), the ICO phase and defi and l ‘performance agriculture. Depending on one’s ability for optimism, NFTs are (or were) the most innovative new technological invention that emerged from the realm of the blockchain or an absolute scourge in the cryptographic space, which provided little value and a lot of noise.
No matter where one is in this regard, the noise seems to be decreasing.