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NFT sales down 90% since market peak

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Sales in the Non-Fungible Tokens market plummeted four months after the start of the market boom. After studying the dynamics of the market, experts in the world of cryptocurrencies suggested that the “NFT bubble burst”.

The peak of sales of hepe tokens fell on the beginning of May. On May 3, users made deals for $ 102 million per day ($ 170 million per week). But less than a month later, sales fell by almost 90%: for comparison, in the week from May 26 to June 2, users purchased NFT for $ 19.4 million.

This has something to do with the recent struggles in the crypto market, as crypto collectibles have a big impact on the success of the entire NFT market.

According to the data, only a few of the NFT collectibles such as CryptoPunks and Hashmask have shown resilience. These markets turned out to be the largest of the seven included in the ranking. They account for over 40 percent of the total trade. That is, almost half of the entire market. Over the past week, they have been sold for about $ 9.2 million.

What is NFT?

NFTs are a virtual digital unit on a blockchain network that cannot be exchanged for another token due to their uniqueness. This token can encrypt a digital drawing, virtual objects, and even the rights to iconic memes or other people’s tweets.

Each of them presented in a single copy, you cannot divide it into several parts or forged. Such tokens used to confirm ownership of an object.

NFT tokens gained popularity in early 2021, when several digital art objects were sold for an unprecedented amount for this kind of transaction. After that, blockchain users began to compete in the originality of lots sold as a token. In April, the sales of the NFT market exceeded $ 2 billion, but the average cost of such tokens had already dropped significantly compared to the peak values in February. The record was the sale of Beeple’s collage for $ 69 million.

Distribution of weekly and daily productivity

Last week, NFTs related to crypto art were better than those related to metauniverses such as digital real estate and artifacts. According to the data, NFT metaverse sales were $ 3.3 million, compared to $ 3 million in crypto art sales. Sports NFT traders completed approximately $ 3.16 million in trades last week.

Crypto collectibles were the top-selling NFTs at the peak of the market. Over the past 30 days, it has decreased by 66%.

The sports token NFT category was the most popular, but the number of active wallets fell by 55%. Just a couple of weeks ago, the number of NFT wallets was over 12,000 at each of the daily peaks in the NFT category. However, this figure dropped significantly to 3900, which is almost 70%.

Using daily data, the primary and secondary collectibles markets are currently the largest ecosystem for NFT sales. This followed by the sports category, which also ranks higher in popularity.

All things considered, the data shows that the NFT bubble lasted only four months – and burst around the same time in May.

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