A collapse in NFT prices… Has the end begun?

after prices wereI am a boy“An interesting phenomenon because of its rise, it has changed over time and experienced a sharp decline, as examples and statistics testify to this.
A non-fungible token (NFT) is a type of crypto-based asset that is a digital file, such as a photo or video, whose components cannot be changed. In 2021, the popularity of NFT exploded when wealthy cryptocurrency speculators rushed to take advantage of higher prices, but sales volumes have fallen in recent months.

Logan Paul… a model for breakdown

was a star”The YouTubeLogan Paul, one of the biggest buyers of NFT parts, when he acquired the $623,000 Azuki set. But as early as last July, Paul confirmed that the price of NFT had dropped dramatically. The Wall Street Silver Financial Channel said the same piece of NFT that Logan Paul bought for more than $600,000 was now worth no more than $10.

Prices were too high…

Last year owning the rarest and most popular NFT business became the latest trend in cryptocurrency investing. This demand caused some of these businesses to achieve fantastic profits. An NFT copy was sold for the only arrest warrant issued against him Nelson MandelaThe symbol of the struggle against discrimination in South Africa, for 130 thousand and 550 dollars at auction.

And this was the price of the most prominent global pieces during the past year:

  1. Beeple – EVERYDAYS: THE FIRST 5000 DAYS – $69.3M
  2. Beeple – Human One for $28.9 million
  3. CryptoPunk 4156 for $10.2 Million
  4. CryptoPunk #3100 for $7.67 Million
  5. CryptoPunk #7804 for $7.57 million.

Price collapse

But the situation has changed today. The NFT market witnessed a sharp decline of 77 percent between the second quarter and the third quarter of 2022. According to the numbers of the “Nonvangible” website, the sector recorded a net quarterly loss of $ 450 million, for the first time ever. . A decrease of 84 percent in profit on resale was observed during this period. Sales in “OpenSea”, the largest market for “NFT”, fell for the fifth month in a row last September.

NFT’s weekly buyer numbers are more than halved from their peak in late January, according to Nonfangible. Reuters said that the emerging “NFT” market benefited from gains in cryptocurrency prices and higher risk appetite among investors in 2021, but it witnessed a sharp decline in 2022, when investors rushed to abandon risky assets.

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