NFT Sales Have Plummeted
Popular blockchain NFT stocks plummet as investors look toward less speculative stocks to put their money during the ongoing bear market.
The blockchain has garnered the attention of countless cryptocurrency and NFT collectors since being brought to the stock market in recent years, with many people earning or losing money on the stock depending on timing. According to new data, NFT sales have plummeted like in the past, alongside the fall of various cryptocurrencies and other speculative stocks that people had put money into during the beginning of the pandemic.
Bloomberg has confirmed that NFT sales volumes on OpenSea have plummeted by 75% since May, while the overall NFT index is around 70% lower than it was in April. One of the possible contributors to the fall of NFT sales may be the massive hacking of Bored Ape that happened in April, which coincides with the stock’s consistent collapse since then. Popular actor and director Seth Green was among the celebrities that had a stake in the Bored Ape NFT collection prior to its hack, and because he planned to make a TV show using the art, Green spent nearly $300,000 to regain the rights to the NFT.
Unless things change quickly, the crypto market will record its first month with less than $1 billion in sales since June of last year, possibly contributing to the NFT-themed restaurant separating itself from the market. The price floors of most NFT collections have been lowered by about 30% in the last month as part of what Head of Research at DappRadar Pedro Herrera calls investors “looking for safer places to put their money.”Adding to the problems for NFT owners, NFT creator Yuga Labs Inc. has filed a trademark infringement lawsuit that alleges an artist known as Ryder Ripps scammed people into buying fake Bored Ape NFTs.
Like with many cryptocurrencies, some investors are anticipating that NFTs will survive the plummet currently being experienced, but that the price for NFTs will be more sensible than “at the height of the mania.” Lenders at the Celsius Network, Babel Finance, and Three Arrows Capital are among the institutions Bloomberg has referenced as places that are currently advising against investing in cryptocurrency or NFT, given the collapse of both stocks. Big NFT deals like eBay’s purchase of KnownOrigin and Uniswap Labs’ acquisition of Genie have done little to increase interest in NFTs since the plummet, and Bored Ape’s ApeFest 2022 also didn’t result in improved sales.
Because NFTs have long been the target of jokes, many investment doubters are celebrating the fall of the stock or are approaching the situation with a “told you so” mentality. Given that many NFTs have experienced drastic reductions in price despite newcomers to the market like Square Enix and GameStop, some new investors may get in on the stock while it remains at the lower levels experienced in June. It’s currently unclear when NFTs will increase again in value, but Bloomberg hinted at continuing decreases by noting that the cryptocurrency used to buy most NFTs, Ether, is also being sold in mass right now.
Source: Bloomberg
