The crypto space’s non-fungible token wing declined even faster than the broader market in the past month after NFT sales plummeted 90% from their high in early May.
The data provided by Protos paints a picture of an NFT market in the midst of an implosion as sales across all categories continue to decline rapidly.
After selling $ 102 million to NFT in a single day on May 3, it sold just $ 19 million last week. In the seven days following the market high, more than $ 170 million in NFT sales were sold, down nearly 90% since then.
The number of NFT wallets showing signs of daily activity has also decreased by 70% since the beginning of May., after falling from $ 12,000 to $ 3,900. NFT sales and wallet moves declined across all token categories that include games, decentralized finance, collectibles, art, utility, metaverse, and sports.
Crypto collectibles were the most frequently purchased NFTs during the top of the market and are still todayafter only declining 66% last month. The second most popular NFT category concerns sports tokens, which showed the greatest resilience during the market crash, with active wallets only declining 55% since early May.
Recent data from NonFungible.com shows that collective (CryptoPunks) and sports tokens (Sorare) have processed the highest volume in the past seven days, accounting for almost 40% of the total NFT volume.
Protos analysts quickly concluded that the NFT bubble has already burst. They wrote, “All in all, the data suggests that the NFT bubble only lasted four months and burst around that time in May.”
NFTs created equal parts of hype and confusion when they emerged as the latest crypto craze earlier this year, following in the footsteps of the tokenization movement (see Dentacoin), the ICO and DeFi phases, and yield farming.. Depending on your optimism, NFTs are (or were) the hottest new technological invention from the blockchain sector or a real scourge in the crypto space that offers little value and a lot of noise.
Regardless of where you are in that regard, the noise seems to decrease.