The NFT is at odds.

Sunday saw the lowest sales of NFT in OpenSea, the largest market for such goods, since December. Only $ 52 million of the items were sold, according to Dune Analytics. Compare that to April, where volumes fell below $ 100 million in just a few cases.

Reluctant buyers led to a sharp drop in NFT prices. Bored Ape Yacht Club NFTs there was a starting price of about $ 400,000 (145 ether) at the end of April, but by Monday that price had been halved to $ 200,000 (91 ether). Similar drops have been observed in others collections of blue chips. The entry price of the pixelated Moon Birds fell from a high of about $ 110,000 to $ 44,000 on Monday, while Reese Witherspoon-backed entry price of World of Women was $ 10,000, down $ 34,000 in the middle of the year. April

Deepening the chaos, NFT is being dumped along with bitcoin and ether. Bitcoin fell below $ 30,000 for the first time since 2020, and ether is at $ 2,300, well below its $ 4,600 high in November. Web3 not going great.

Citing the huge drop in the number of NFT purchased, the Wall Street Journal reported last week that NFT sales were “equalizing” while Yahoo asked whether the $ 140,000 sale of CryptoPunk, bought for $ 1 million six months earlier, was a signal of the “death of NFT.” This caused another kind of euphoria: the Rickers called the impending death of the NFT.

“The NFT market is collapsing”, one tweet with over a thousand likes. “It turns out that digital scales and digital monkeys are not a good store of value.”

There is something in these proclamations. NFT is a 4-year technology that people have only paid attention to in the last year. Supported almost entirely by crypto investors, their long-term resilience is worth questioning. “The variability is particularly pronounced in NFT, as the market is less mature and therefore more susceptible to changes in consumer sentiment,” said Ethan McMahon, an economist at blockchain analytics firm Chainalysis.

And yet there is an element of bias here to confirm. People cite the decline in the number of NFTs bought as evidence of a collapse, unaware that the money is moving to a small set of expensive NFTs rather than scattering among thousands of cheaper ones: in April, traders, for example, bought a Bored Ape for $ 400,000, not for 100 different NFTs for $ 4,000 each.

Selective examples of NFT, which were bought for a huge amount months ago and sold for a small part of it now, are equally useless. NFTs are volatile, which means that money moves quickly from one trend to another. It is true that Jack Dorsey’s first tweet sold for $ 2.9 million a year ago and at an auction in mid-April received the highest bid of only $ 280. Does this mean that the NFT time has expired? That same week, retailers spent $ 76 million to buy pixelated owls moon birds public sale, so probably not.

People don’t like NFT because most of it is bad for the planet and it currently exists to a large extent status symbols for celebrities and crypto rich. But just because you hate them doesn’t mean they’re leaving.

This does not mean that the NFT market is strong at the moment. The NFT is at odds. But so is everything else.

The poor state of the market seems to be linked to the Federal Reserve interest rate increase of 0.5%, his biggest in two decades. If the NFT market was up, that would be practically the only thing it was. The Nasdaq stock index fell 20% in the last month. Compared to that day last month, Alphabet and Amazon fell 11% and 28%, respectively. These are not just technology companies, as most consumer-oriented companies are experiencing stress. Disney has fallen 18% in the last 30 days; WWE announced record quarterly profits, but it’s still a red month. Nike and Adidas fell 11 percent, and owner Gucci Kering fell 15 percent.

The aforementioned 50% drop in the price of the Bored Ape yacht club puts him in company with Neflix. Troubles complicated by losing subscribers for the first timethe stock price of the streaming giant has halved in the last 30 days.

What goes up must come down. The NFT market has grown by about 2500% in 2021according to DappRadar, with $ 25 billion spent, compared to about $ 94 million in 2020. Almost no one would deny that speculation has created a bubble for NFT, even if many disagree about how inflated that bubble is.

But almost the same thing could happen to many companies whose ratings skyrocketed after March 2020. Amazon’s stock reached $ 3,777 last July, twice its pre-COVID price. Apple, Netflix and Meta have doubled their share price in the last two years, and Tesla’s highest value was 14 times lower than the pandemic.

The numbers are rising. The numbers are decreasing.

Yuga Labs’ Otherside metaverse may be the best indication of where the NFT market is heading.

South Laboratory

NFTs aren’t dead yet

The state of NFTs is in many ways encapsulated by Other side, an upcoming metaverse, developed by the creators of Bored Ape Yacht Club, Yuga Labs. Yuga Labs on April 30 dropped NFT land deeds for Otherside, with just under $ 1 billion spent on virtual earth in the 10 days since. It’s hard to say that the NFTs are dead when the biggest trading day comes in the last two weeks.

But the launch highlighted some of the weaknesses of the cryptocurrency – weaknesses that are contributing to the downturn in the market. Thanks to Ethereum’s performance issues, retailers have spent about $ 200 million on transaction fees, including thousands of dollars on failed transactions. The Ether Deflation Protocol burns these “gas” charges, which means that the current market activity has been destroyed for approximately four days.

Still, the upcoming metaverse is in many ways the evolution of NFT. NFT are used primarily as digital status symbolsbut Yuga Labs hopes to turn its Bored Ape brand into a massive AAA game. It’s not the only one, as dozens of NFT creators are hoping to get OpenSea into your living room. Whether or not some people can succeed will tell more about the long-term viability of NFT than about the decline caused by the jump in interest rates that has affected most other indices.

You still don’t count the digital monkeys.

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