Cryptocurrencies haven’t been the only thing losing value in 2022.
Digital collectibles have also taken a major hit with NFT sales plummeting in the third quarter of 2022.
According to data provided to Safe Betting Sites, monthly NFT sales on OpenSea have dropped almost 90 percent since January and average NFT sale prices have also been declining sharply during that same span.
In Q3 2022, OpenSea saw a quarter over quarter decline in sales volume of nearly 60 percent.
Check out the highlights below.
- NFT sales have dropped by 72.8 percent since Q1 and nearly 60 percent since Q2 2022
- Monthly NFT sales have declined nearly 90% since January
- Average NFT sales prices have dropped 77 percent since January
With sales volume steadily declining, is the NFT boom officially over?
OpenSea NFT Sales Drop 60% in Q3 2022
NFT sales began to explode near the end of 2021.
By the first quarter of 2022, NFT sales hit a market peak at $12.5 billion.
However, NFT sales have been in a decline since with third quarter sales reaching only $3.4 billion.
Since Q1 2022, NFT sales have dropped by 72.8 percent since Q1 and nearly 60 percent since Q2 2022.
With the prices of cryptocurrency dropping, average NFT sale prices have also followed suit.
In January, the average sale value for a NFT was $511.33 dollars.
That number plummeted to $115.15 in July, a decrease of more than 77 percent.
Cryptocurrency Down 60% Since Last Year
Cryptocurrencies like Bitcoin and Ethereum are down more than 60% since last year.
Thanks in part to the cryptocurrency crash, inflation, and rising interest rates, the collectibles market has also taken a hit.
While NFTs have technically become cheaper to buy as a result of the crypto crash, consumers also have less disposable income to invest in digital collectibles.
Is The NFT Boom Officially Over?
There has been a lot of speculation on why the NFT crash was so drastic but economists cannot link it to a single event in time.
While the falling prices of cryptocurrency have affected NFT transaction volume, the crash cannot be explained by this phenomenon alone.
Inflated markets have played a role in the drop in transaction values too.
The NFT market generated a lot of hype with celebrities showing off their NFT collections by changing their profile pictures on various social media platforms.
While crypto and the NFT market have a symbiotic relationship, it doesn’t necessarily mean the market has completely failed.
As the NFT market matures, there’s a chance it won’t be subjected to the volatility of cryptocurrency.
The NFT crash could just be another economic cycle. While there has been a quick crash, the innovation behind the NFT market leads far beyond the art sector.
Recently, there have been big shifts in NFTs with real estate, ESG, healthcare, food, and entertainment, which may be promising for another upswing.
For enthusiasts that believe in the future of NFTs, the crash might be the best time to buy.
Logan Paul’s NFT Drops Over 99 percent in value
Like many celebrities, Logan Paul was all over the internet showing off his NFT collection.
His Azuki “Bumblebee” NFT was purchased in 2021 for $623,000. Since then, its value has decreased to just $10, a drop of over 99 percent.
Paul currently owns 4,500 NFTs according to OpenSea.
In December 2021, Paul stated that he had invested over $2.645 million on NFTs.
While the crash may not look favorable, there is still hope on the other side for buyers.
After the Ethereum merger in September 2022, there has been a small increase in ETH NFT sales for popular NFT projects like Bored Ape Yacht Club.
In fact, BAYC increased by 187% within 24 hours of the merger.