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NFT bubble bursts as market crashes by 90%

  • NFT market crashes by 90 percent from $102 million in sales to $19.4 million.
  • NFTs linked to crypto-arts were outsold by NFTs linked to metaverses like digital real-estate and artifacts in the past week.

NFTs recently entered the mainstream market with many celebrities like Eminem and Snoop Dogg finding interest in the market. The demand was unmatched until the NFT market reached its peak on May 3rd. Around $102 million worth of NFTs were sold in a single day. The crypto-collectibles contributed $100 million to the total sales. In the seven days surrounding the market’s top, around $170 million transactions in NFTs were made. 

However, the NFT excitement seems to have subsided as only $19.4 million in sales were processed in the past week. This represents a market crash of near 90 percent. Out of this, $9.2 million of crypto-collectibles were transacted in the past week, representing half of the total collectibles sold. This is somehow attributed to the recent struggle of the crypto market as the crypto-collectibles make a lot of impact on the success of the overall NFT market.

According to data, only a few of the NFT Collectibles like CryptoPunks and the Hashmask have shown resilience. These markets have appeared the largest out of the seven markets ranked. They make up over 40 percent of the total trade volume. 

The NFT weekly and daily performance breakdown

NFTs linked to crypto-arts were outsold by NFTs linked to metaverses like digital real-estate and artifacts in the past week. According to the data, the metaverse NFTs saw $3.3 million in sales compared to the $3 million in sales of the crypto-art NFTs. Traders of sports NFTs transacted around $3.16 million in the past week. 

Crypto-collectibles were the most sold NFTs around the market peak. In the last 30 days, it has declined by 66 percent. 

The NFT category related to sports tokens was the most popular but has seen its active wallets reduced by 55 percent. Just a couple of weeks ago, the NFT wallets were over 12,000 at each of the NFT category’s daily peaks. However, this has dropped considerably to 3,900 which is close to a 70 percent reduction. 

This affected all the NFT categories including spanning gaming, decentralized finance, collectibles, art, utility, metaverses, and sports.

Using daily data, primary and secondary markets for crypto-collectibles is currently the largest ecosystem for NFT sales. This is followed by the sports category which also ranked higher in terms of popularity.

According to the data, the NFT bubble has burst already.

All things considered, the data suggests the NFT bubble lasted just four months — and it popped about this time in May.

About Author

John's a cryptocurrency and blockchain writer and researcher with years of experience. He has a lot of interest in emerging startups, tokens, and the invisible forces of demand and supply. He holds a Bachelor's degree in Geography and Economics

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