A survey of 81 non-fungible token (NFT) collections on the Ethereum blockchain showed a strong overall loss in market capitalization in 2022, according to a report by DappRadar. released February 9. However, the losses were not even distributed.
The Ethereum NFT market was worth $9.3bn at the start of 2022, according to DappRadar’s valuation, and that number dropped to $3.7bn by the end of the year, a loss of 59.6%. The value of Ether (ETH) impacted all values:
“It is also important to consider that ETH lost 60% of its value last year, which had a strong influence on the value of NFTs.”
The NFT market peaked in February 2022 at $19.1 billion, outperforming Bitcoin (BTC) and Ether until the Terra/Luna crash in May. The following month, the NFTs had lost 88% of their value. The market hit its low for the year at $2.2bn at the end of November, the month of FTX’s collapse. Thus, the market ended the year 68% from that minimum. The report noted:
“This NFT market shrinkage was not a reflection of NFT’s utility, but rather the result of bad actors and market manipulations.”
Yuga Labs accounted for two-thirds of the market in 2022, with its CryptoPunks and Bored Ape Yacht Club collections holding 46.7% of the market by themselves. The Otherdeeds collection was the loss leader for Yuga Labs, dropping 86.15%.
Related: Should Bored Ape Buyers Be Legally Entitled To Refunds?
The Azuki, Pudgy Penguins, and Degen Toonz collections were the only “launched in 2021 or early 2022 to see significant market capitalization growth,” rising 113.89%, 260%, and 204%, respectively.
NFT collections released after the collapse of Terra/Luna fared better. The report cites Potatoz (+134.68%), Renga (+211.63%), DigiDaigaku (+209.88%), and God Hates NFTees (+1,653.28%) as examples.
The report also tracked the decline in the share of collectibles in the NFT market share. Collectibles started 2022 with over 90% of the market, but remained well below 75% in January 2023. NFT trading volume in January 2023 was $870 million.
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