The NFT Market Has Collapsed – Already

Well, it was a good run but it seems that the NFT bubble has finally burst. The sales in the last week are nothing compared to what was happening earlier this year. Memes, videos, jpg were being sold in the millions every day as the bubble grew bigger and bigger. Digital artworks were being sold in the ten of millions range but that has now since slowed down.

It’s unclear if it’s just a temporary fall, who knows maybe NFTs will pick up the pace again. However, according to a comprehensive study by Protos, it does seem that the bubble has burst. According to the study, NFTs peaked on May 3rd when around $102 million worth of tokens were sold in just a single day. With the crypto-collectibles market making up $100 million of those sales.

Now, the data shows that only $19.4 million NFT sales have happened in the last week. This number isn’t small by any means but it does show that things have slowed down considerably. Gone is the time when literally hundreds of millions of dollars were moving around the internet, with people buying videos or certificates of authenticity for jpegs and gifs.

The study shows that overall the NFT market has taken a hit of at least 90% since its last peak. The last peak was the one on May 3rd that we talked about above. NFT art sales have taken a hit as well. Many were being sold for tens of millions in just a day but now sales have reduced to just $3 million in global sales for the past week.

The number of active NFT wallets has also been reduced from 12,000 to 3,900. These wallets were used to purchase the tokens. It is clear that NFTs are just as volatile as the other cryptocurrencies. There is a chance that they will bounce back eventually. The study also showed some graphs based on the data they collected and we can clearly see that sales have died down.

Like everything crypto-related, we do believe that it will bounce back. Although personally, I don’t see the worth in having a certificate telling the world that I own a meme. But hey if you have free cash lying around, it’s up to you on how to use it. I personally would have liked to buy that Grumpy Cat meme.

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