The enthusiastic and bullish crypto economy, as well as optimistic investor sentiment, helped to sustain the NFT boom. Bitcoin’s bear market, on the other hand, has had a detrimental influence on the cryptocurrency community.
By 2021, nonfungible tokens (NFTs) had risen to prominence as musicians, stars, A-listers, and the sports industry discovered a fan engagement technology that allowed the general public to profit from their success.
However, as a result of the intense bear market that began in 2022, sales plummeted to one-year lows and NFT hype fizzled.
The NFT boom, which began in early 2021, maintained its popularity until May 2022 — bolstered by a robust and optimistic cryptocurrency environment as well as enthusiastic investor optimism. However, Bitcoin’s failure to maintain its all-time high prices had a damaging impact on the crypto market.
In July 2022, the total number of daily sales fell to around 19,000 with an anticipated value of $13.8 million, the NFT ecosystem’s worst performance of the year.
However, a similar volume of daily NFT sales was deemed spectacular last year, as the immature ecosystem witnessed widespread adoption across diverse applications.
The evidence is evident in nonfungible.com’s data, which shows the NFT ecosystem’s highest number of daily sales (224,768 NFTs) and worth ($78.3 million) on September 24, 2021. The most significant sale in terms of money value occurred on May 1, 2022, when 118,577 NFT
Falling Ether prices, a scarcity of secondary market demand, and unrealistic gas fees are all hurting the hype surrounding NFTs. As a result, the NFT market capitalization has fallen by almost 40% in the last three months, with trading volume dropping by over 66%.