Market Capitalization Down 40%, The NFT Records Worst Revenue In June

The NFT boom, which started in early 2021, maintains its glory until May 2022. However, the bear market that is still in the red has had a negative impact on the token market instead of this.

The NFT recorded the lowest revenue in the past 1 year

Nonfungible tokens (NFT) took center stage in the year 2021 as artists, influencers, A-list celebrities and the sports industry finally came across a fan engagement tool that empowered the general public to cash in on their success. However, the hype around NFT did not manage to stand its ground as sales plummeted to one-year lows amid the ruthless bear market of 2022.

Beginning in early 2021, the NFT boom maintained its prominence until May 2022, helped by a robust and bullish crypto ecosystem and a favourable investor climate. However, the cryptocurrency ecosystem as a whole suffered as a result of Bitcoin’s (BTC) inability to maintain its all-time high values.

The overall number of daily transactions decreased to about 19,000 with an estimated value of $13.8 million in June 2022, the NFT ecosystem’s poorest month of the year. This figure was last seen in June 2021.

According to data from nonfungible.com, on September 24, 2021, the NFT ecosystem experienced 224,768 NFTs worth $78.3 million in daily transactions, which was a record high. However, on May 1, 2022, 118,577 NFTs were sold for a total of $780.4 million, making that day the largest transaction in terms of monetary amount.

Falling Ether (ETH) prices, a dearth of secondary market demand, and inflated gas prices are a some of the main factors that are affecting the buzz surrounding NFTs negatively. Data from NFTGo demonstrates that as a result, during the past three months, the NFT market value decreased by around 40% while losing more than 66 percent of its trading volume.

However, social media giant Meta’s Facebook, recently announced plans to support NFTs for creators. A Meta spokesperson revealed that the rollout of NFTs on Facebook would be gradual, beginning with select creators in the United States.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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