NFT Market Declines as Crypto Prices Fall: Details

In a significant development, the NFT market has taken a major hit following a broader cryptocurrency sell-off. 

Unfortunately, moments after the largest cryptocurrency, Bitcoin, dropped to $85,000 and Ethereum fell to $2,200. Reports show that the overall NFT sales volume also diminished drastically. 

NFT Sales Drop 28.9%, But Trading Activity Stays Strong

According to market data, NFT sales fell by 28.93%. This means they slid from $152.9 million to $107.1 million in the past seven days.

Despite the current market decline, market participation remained positive and activity-driven. The number of NFT sellers increased by 32.81% to 314,871. In addition, the total number of transactions remained stable, rising slightly by 0.86% to 1.56 million. 

This suggests that while NFT prices are declining, traders are still actively buying and selling digital assets. 

Ethereum Sales Take a Major Hit While Bitcoin NFTs Gain Ground

Now, not only NFT sales saw this massive market depreciation. In addition, Ethereum-based NFTs saw the most disappointing decline. Its market sales dropped by 67.86% to $25.3 million. However, the number of buyers increased by 20.27% to 50,056. A paramount factor in this decline was the terrible loss in wash trading, which reduced by 92.83% to $2.7 million.

In contrast, Bitcoin NFTs moved in the opposite direction, with sales increasing by 16.73% to $24.3 million. The number of Bitcoin NFT buyers also grew by 30.71% to 30,203. Other blockchains experienced mixed results. For example, Mythos Chain saw a slight drop in sales, while Polygon and Solana posted gains of 45.35% and 12.41%, respectively.

Pudgy Penguins and Other Top Collections Struggle

Meanwhile, there is a promising development for the NFT collection. This is because some projects held strong while others had a big low. In this case, Courtyard reached the top spot with $12.1 million in sales, up 39.55%, followed by Ordinal Maxi Biz, which surged 450.88% to $12.0 million.

However, once-popular collections such as Pudgy Penguins suffered a steep decline. Pudgy Penguins fell to tenth place with $1.6 million in sales, marking an 80.69% drop. This sharp decline reflects shifting buyer interest and the impact of the overall market downturn.

Still, with the total crypto market cap dropping from $3.18 trillion to $2.84 trillion, the NFT market remains volatile. 

Another noteworthy event that happened with the current market decline was President Donald Trump organization that announced plans to launch a metaverse and an NFT trading platform.