Key points:
- NFT Sales Fall to Lowest Levels for a Year With Wider Crypto Woes
- Though NFT “Blue Chips” Have Outperformed
- NFT Mini-Explainer Guide
Sales of Non-Fungible Tokens (NFTs) have plunged to their lowest level in a year according to both Chainalysis, a cryptocurrency research company and data tracker DappRadar. This is on the back of prices of NFTs falling alongside the aggressive bear market in cryptocurrencies seen in 2022. We also have a quick Explainer Guide on NFTs for those of you who are new to this sector of the cryptocurrency world.
NFT Sales Fall to Lowest Levels for a Year With Wider Crypto Woes
According to Chainalysis, the respected cryptocurrency and digital asset research platform sales of NFTs of were just over $1 billion in June. This was their lowest level since June 2021, with peak sales recorded in January of this year at over $12 billion. Similar data was also noted by DappRadar, with the major NFT marketplace, OpenSea, seeing sales fall by 75% since just May. Clearly, these declines have been part of the crypto winter, which has seen the value of the wider cryptocurrency plunge from over $3 trillion to $1 trillion. Ethan McMahon, a Chainalysis economist stated, “This decline is definitely linked to the broader slowdown in crypto markets.”
Also Read: The Most Expensive Non-Fungible Tokens Ever
Though NFT “Blue Chips” Have Outperformed
However, demand for so-called blue chip NFT collections has held up, according to DappRadar, a firm that tracks NFTs and blockchain-based video games. Over the past month, the cheapest NFT in the Bored Ape Yacht Club has declined by only 1%, to $90,000. Pedro Herrera, Head of Research at DappRadar’s said, “Blue chip collections are performing vastly better than the vast majority of NFTs.”
NFT Mini-Explainer Guide
NFTs, are digital assets that represent ownership of a unique item. Unlike most cryptocurrencies, which are interchangeable, each NFT is unique and cannot be replaced by another token. NFTs can be used to represent anything from digital art to in-game items, and they have become increasingly popular as a way to prove ownership of digital assets. NFTs are stored on a blockchain ledger, which allows them to be tracked and traded securely. Because they are built on the blockchain, NFTs can also be used to create smart contracts that automatically enforce the terms of an agreement. Non-fungible tokens are a new and exciting way to own and trade digital assets. As the technology behind them continues to evolve, we can expect to see even more innovative uses for NFTs in the future.