The Plunge of the NFT Market: A Closer Look
The world of non-fungible tokens (NFTs) experienced a surge in popularity followed by a significant decline. Despite the rise of new forms of NFTs such as Bitcoin ordinals and Ethscriptions, the global NFT market has been recording negative gains since June 2022.
Main Breakdowns:
- NFT trading volume fell 35% in Q2
- Ethereum remained the dominant platform for NFT trading, capturing 83.0% of the volume
- Bitcoin ordinals and Ethscriptions gained popularity among NFT investors
- Solana experienced the most significant decrease in trading volume, declining by 78.6% in Q2
- NFT sales fell 7% in the past week
Despite the decline in trading volume, the number of traders participating in the NFT market has increased. Ethereum continues to dominate the market, followed by Bitcoin ordinals and Solana NFTs. However, both Bitcoin ordinals and Solana NFTs have experienced declines in sales volume in the past week.
Hot Take:
The NFT market’s plunge raises concerns about the sustainability of NFTs as a long-term investment. While new forms of NFTs continue to emerge, it remains to be seen whether they can revive the market and bring back the initial hype. Crypto enthusiasts and investors should closely monitor the market trends and adapt their strategies accordingly.
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