Recently the graphics of the NFT market went down. Even the most successful NFT collections could not survive the downfall. The floor prices of top NFTs crashed. In this post, we will discuss more on the NFT market collapse.
From June 10 onwards the graph started to decline. The top NFT collections including Bored Ape Yacht Club and Mutant Ape Yacht club went down with their floor prices crashing in both Eths and US dollars. Is this the end of NFT culture or will it rise again? Although today the market seems in a far better condition.
We will be discussing more on the NFT market collapse. What are the reasons for this crash? Are NFTs worth anymore? It has been almost 10 days since the crash and the graphs are still down in red. So, without wasting time, let’s start.
NFT Market Collapse
On Monday, 13 June 2022, a market crash was seen in the floor prices of the NFT marketplace. The floor price for Bored Ape Yacht Club (BAYC) and CryptoPunks fall to 74 ETH ($92,223) and 48 ETH ($69.473) respectively. These NFT collections have been the most successful collections of all time. The all-time high floor price of BAYC was 153.70 ETH and that of CryptoPunks was 123 ETH. This crash has been reported due to a cyber-attack from Twitter which bypassed the security of the accounts. Yua Lab’s social accounts were compromised three times already this year.
According to DappRadar, the number of users on OpenSea which is the largest NFT marketplace by volume has fallen 14% in the past month. Simultaneously, monthly trading volume fell 65% to $500 million. Interestingly, the number of transactions increased month over month by 6.4%, possibly due to the sheer number of users seeking to sell their NFT collections at a better price.
Related: NFT Index Asia | Red Hare NFT Index
What Are The Causes For NFT Market Collapse?
The NFT market is down by 92% since September 2021. There has been an 88% drop in the active wallets since last month. In November the active users were 119,000 and in June the users are low as 14,000 users. The prime reason for this crash is the hacking of the social platform of many top-ranking NFTs collections and the users seem to be disinterested in the NFTs. As the number of active users are declining, that means people are no longer logging into their wallets to make transactions.
What Are The Current Stats Of Top Ranking NFTs?
|Theta Network||$ 1.25|
Here we conclude our post on the NFT market collapse. It is difficult to predict if the crash of NFTs is long-term or if the crash will end soon. It has been 15 days and counting and the prices are still down. Although the market is becoming stable now, still the difference is huge.
Keep exploring our website to stay updated with the latest news on NFTs.
Frequently Asked Questions
Q1. Are NFT Prices Dropping?
The popular Bored Ape NFTs saw a 25% decrease in average price along with other “blue-chip” tokens. The party is over for crypto bros this week, as the digital assets took a huge hit across the board.
Q2. Will NFT Market Recover?
But the NFT market has shown signs of recovery since mid-April, according to the report. Overall, more than $37 billion has been sent by cryptocurrency wallets to NFT marketplaces in 2022 as of May 1. That’s nearly caught up to last year’s total of $40 billion sent in 2021.
Q3. Is NFT Easy To Sell?
Most people interested in creating and selling NFTs are digital creatives. So in short: Yes, it is hard to sell an NFT unless you already have an audience. As with anything, you need to find your buyers, and they don’t come just because you uploaded something on a marketplace or website.