Ethereum NFT collections lost nearly 60% of their market cap in 2022: Report
A survey of 81 nonfungible token (NFT) collections on the Ethereum blockchain confirmed a pointy general loss in market capitalization in 2022, in line with a report from DappRadar released Feb. 9. Losses weren’t evenly distributed, nevertheless.
The Ethereum NFT market was value $9.3 billion initially of 2022, in line with DappRadar’s valuation, and that determine dropped to $3.7 billion by year-end — a lack of 59.6%. The worth of Ether (ETH) impacted the valuations:
“Additionally it is necessary to contemplate that ETH misplaced 60% of its worth final yr, which had a robust affect on the worth of the NFTs.”
The NFT market peaked in February 2022 at $19.1 billion, outperforming Bitcoin (BTC) and Ether till the Terra collapse in Could. By the next month, NFTs had misplaced 88% of their worth. The market hit its yr low at $2.2 billion on the finish of November, the month of the FTX collapse. The market completed the yr up 68% from that low. The report notes:
“This retraction of the NFT market was not a mirrored image of NFT’s utility, however quite a results of dangerous actors and market manipulations.”
Yuga Labs accounted for two-thirds of the market in 2022, with its CryptoPunks and Bored Ape Yacht Membership collections holding 46.7% of the market by themselves. The Otherdeed assortment was Yuga Labs’ loss chief, falling 86.15%.
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The Azuki, Pudgy Penguins and Degen Toonz collections have been the one ones “launched in 2021 or early 2022 to expertise vital market cap development,” rising 113.89%, 260% and 204%, respectively.
NFT collections launched after the Terra collapse fared higher. The report cites Potatoz (+134.68%), Renga (+211.63%), DigiDaigaku (+209.88%) and God Hates NFTees (+1,653.28%) as examples.
The report additionally traced the declining share of collectibles within the NFT market share. Collectibles began 2022 with over 90% of the market however held nicely under 75% of it in January 2023. Buying and selling quantity for NFTs in January 2023 amounted to $870 million.
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