The all-time low of the crypto market has been a nightmare for crypto traders who entered the crypto world recently. The crash of Terra LUNA and its stable coin UST made a huge impact on the crypto market. Following that, a series of events like Bitcoin falling behind $20K and the fall of other currencies, especially Ethereum, alarmed the blockchain users as a whole. You might have heard that around 95% of the Non-Fungible Tokens are minted on the Ethereum blockchain. The fall of ETH below $900 concerned the NFT traders as well. NFT trading platforms saw good sales in the first quarter of 2022, while the second quarter is not going so well. Will NFT survive the crypto winter? Let’s dive in.
The NFT crash
Though NFTs are minted on other blockchains like Solana, Polygon, Flow, and more, the home of most of the NFTs today is the Ethereum Blockchain. When the worth of the currency to exchange NFTs goes down, it deteriorates the value of the NFT on sale. The first quarter of 2022 managed to bring the total sales volume to $12.4 billion in the first quarter, trading over 27.7 million NFTs in direct and secondary sales.
DappRadar has found that though the sales volume hit an all-time high, there was a decrease in the sales volume from January to march. However, the number of NFTs sold hasn’t declined a bit. These statistics have given a definite statement that the decline is all on the crypto crash while people are still interested in buying non-fungible tokens. Looking at the numbers of trades and unique traders, the demand for NFTs stays strong and invincible. So what happens next?
The Second Quarter
The regulatory measures on the blockchain and crypto are still on, and the crypto winter seems to continue. At this time of writing, bitcoin touched its all-time low in the last 18 months reaching $16k. The bear market seems to continue, and the worth of NFTs is sinking.
Older projects like Bored Ape Yacht club and Mutant Ape Yacht club contributed a subsequent sales volume, and its native currency Ape coin, recorded a massive hit. With that, new projects like Azuki also contributed to the overall sales volume of $106 million.
Entering the second quarter, a report says, the NFT sales dropped 150%. The average price of the NFT also dropped from $589 to $192, which is more than a 50% drop in the average value. On the other hand, the number of transactions also dropped significantly.
NFT.NYC
NFT.NYC annual conference for the NFT industry that has been happening over the last 4 years. Eminence from various brands of NFT marketplaces will be attending the conference. The conference hosts 1500 crypto and NFT experts from all around the world. With the theme “The Diversity of NFTs,” the conference kicked off on 20th June and is to run till 23rd June.
There are several panels put out which will discuss how NFTs will shape the future of Music to how women are changing the NFT world. NFT.nyc’s NFT awards 2022 will take place, and the award is backed by popular NFT trading platforms like Opensea, APE NFT, and NFTkred.
The conference has already started showing its significance that the floor prices of NFTs began to shoot up. It is found that the floor price of the top 10 NFTs changed from red to green in the 24 hrs right after the commencement of the nft.NYC conference.
Surviving the crypto winter
People who are interested in NFTs today are well aware of the NFTs and their worth. It is now hard for the NFT collections that are launched to grab money. The market is getting mature, and the buyers clearly differentiate the projects that are put up for scams. This makes the NFT industry grow a bit further towards gaining its fullest potential.
Upshot
Even during the crypto crash, NFTs managed to maintain their statistics on and off. Governments have already started to take up blockchain and NFTs for documentation, like birth certificates and land registrations. Upgrading the characteristics of NFTs and bringing new utility and potential can make the NFT industry stronger in the future, which is not so far from today.
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