A survey of 81 nonfungible token (NFT) collections on the Ethereum blockchain confirmed a pointy total loss in market capitalization in 2022, in line with a report from DappRadar released Feb. 9. Losses weren’t evenly distributed, nevertheless.
The Ethereum NFT market was price $9.3 billion at first of 2022, in line with DappRadar’s valuation, and that determine dropped to $3.7 billion by year-end — a lack of 59.6%. The value of Ether (ETH) impacted the valuations:
“It is usually essential to contemplate that ETH misplaced 60% of its worth final 12 months, which had a powerful affect on the worth of the NFTs.”
The NFT market peaked in February 2022 at $19.1 billion, outperforming Bitcoin (BTC) and Ether till the Terra collapse in Might. By the next month, NFTs had misplaced 88% of their worth. The market hit its 12 months low at $2.2 billion on the finish of November, the month of the FTX collapse. The market completed the 12 months up 68% from that low. The report notes:
“This retraction of the NFT market was not a mirrored image of NFT’s utility, however slightly a results of unhealthy actors and market manipulations.”
Yuga Labs accounted for two-thirds of the market in 2022, with its CryptoPunks and Bored Ape Yacht Membership collections holding 46.7% of the market by themselves. The Otherdeed assortment was Yuga Labs’ loss chief, falling 86.15%.
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The Azuki, Pudgy Penguins and Degen Toonz collections have been the one ones “launched in 2021 or early 2022 to expertise vital market cap progress,” rising 113.89%, 260% and 204%, respectively.
NFT collections launched after the Terra collapse fared higher. The report cites Potatoz (+134.68%), Renga (+211.63%), DigiDaigaku (+209.88%) and God Hates NFTees (+1,653.28%) as examples.
The report additionally traced the declining share of collectibles within the NFT market share. Collectibles began 2022 with over 90% of the market however held properly under 75% of it in January 2023. Buying and selling quantity for NFTs in January 2023 amounted to $870 million.
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The journalist is a writer and digital nomad. Loves thinking, learning, and writing about all things Web3, particularly its impact on major creative industries.