After having an excellent reception from enthusiasts and the general public in 2021, NFTs have had a worrying decline within the market. The best example of this is the price of top-tier NFT collections, which, according to a report presented by CoinGecko, have experienced a significant drop of up to 83% since their peak on July 19, 2023.
Collections of these top-tier, non-fungible tokens, which are also known as “blue chip”, a term that is used precisely to refer to highly liquid stocks, and similarly applied to the cryptocurrency and token market. Items that in their base price of each of them, have experienced losses ranging between 3.3 ethers (ETH) and 120.2 ETH, which represents an amount between $6,200 and $227,500 dollars, respectively.
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The CoinGecko report indicates that “the drop in the NFT floor price occurs in the middle of the first NFT winter, something that is also reflected in the drop in metaverse land prices”, where they speak of “floor price” or “base price”, referring to the initial price at which an NFT is traded at auction.
In addition to the decline in their price, NFTs have also seen their trading volume affected, which has decreased by 35% according to a study by CoinGecko, who evaluated the performance of the top 11 NFT collections, including well-known names such as CryptoPunks, Bored Ape Yacht Club (BAYC), VeeFriends, and Cool Cats, among others. Among them, Moonbirds saw the largest percentage drop from its base price, with an impressive -95.7% in ETH and -97.3% in USD.
But on the other hand, a report presented by the Binance exchange suggests some signs of “stabilization” when comparing NFT sales in the first half of 2023, with the second half of 2022. Although the sector suffered a significant drop, the sales volume showed a recovery, increasing from $4 billion to $5.3 billion, representing a growth of 32%.
“Interest in NFTs peaked at the beginning of the year and has been steadily declining. This is a reflection of the challenging environment and indicates that it may still be some time before a new wave of traders enters the market,” Binance says.
Finally, this report indicates that the video games and metaverses sector was the most affected by the fall from all-time highs, while those related to art showed a better performance. Despite some signs of improvement, the monthly average of single or retail buyers in the first half of 2023 is still 61.2% lower than in the first half of 2022, indicating that the NFT market still faces challenges in its recovery.
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