NFT Sales are Down

Are we about to face an NFT apocalypse?

Hey Guys,

How is the OpenSea treating you bro?

How quickly the magic sours in crypto is super worrisome, especially as Bitcoin goes down, it’s as if the magic is on pause.

For NFT platforms, I don’t know quite what to make of it?

According to the likes of Bloomberg and TechCrunch, the market for nonfungible tokens -- such as artwork of bored apes and pudgy penguins -- has been spiraling downward after sales sank sharply and the prices of popular NFTs plummeted over the last few weeks. 

NFTs are a sector that’s just gambling and playing with billions of dollars. Even as mainstream brands and BigTech tries to embed NFTs into their platforms. Some VCs like a16z have bet big on NFT platforms themselves. But who is going to bail them out if it doesn’t come to pass?

How bad is it going to get in the Crypto winter? The crypto niche is on course to record its first month with under $1 billion in sales since June 2021, according to data tracker DappRadar. On the world’s biggest NFT marketplace, OpenSea, sales volume has fallen 75% since May, and looks set to scrape the lowest levels since July 2021, Dune data shows. 

OpenSea’s former valuation just makes no sense and all its peers are breaking down. Between November and February, video game giants, from Ubisoft and Sega to Square Enix, all signaled their intention to cash in on the NFT craze. But all NFT plans are on halt now that the doom has begun.

The NFT auction marketplace OpenSea had a blockbuster 2021 and as a result is seeing its private valuation grow more quickly than almost any other startup. Just six months later and it almost feels like a sunken ship.

NFT prices are plummeting even as demand for cryptocurrencies dry up. The shiny trend now looks pretty pathetic. The prices of top-selling NFTs have also slipped. Some Otherdeed NFTs, which were in such high demand at their May launch that they clogged up the Ethereum network, have seen their price floors fall by about 30% in the last 30 days, while the price floor on Bored Ape Yacht Club’s (BAYC’s) blue-chip NFT collection has also fallen nearly 33% in the same time, data from NFT Price Floor shows. 

This is the calm before the storm with Bitcoin maintaining a 20k level.