Ethereum NFT collections lost nearly 60% of their market cap in 2022: Report

NFT

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 launched Feb. 9. Losses weren’t even distributed, nevertheless.

The Ethereum NFT market was value $9.3 billion initially of 2022, in line with DappRadar’s valuation, and that determine dropped to $3.7 billion by yr finish — a lack of 59.6%. The worth of Ether (ETH) impacted all values:

“It is usually vital to think about that ETH misplaced 60% of its worth final yr, which had a robust 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/Luna collapse in Might. By the next month, NFTs had misplaced 88% of their worth. The market hit its low for the yr at $2.2 billion, on the finish of November, the month of the FTX collapse. Thus the market completed the yr up 68% from that low. The report famous:

“This retraction of the NFT market was not a mirrored image of NFT’s utility, however fairly a results of dangerous 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 Otherdeeds assortment was Yuga Labs’ loss chief, falling 86.15%.

Associated: Ought to Bored Ape consumers be legally entitled to refunds?

The Azuki, Pudgy Penguins and Degen Toonz collections had 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/Luna 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 beneath 75% of it in January 2023. Buying and selling quantity for NFTs in January 2023 amounted to $870 million.

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