Key Highlights:
- NFT Sales Volume Drops by 64% in July YoY
- Demand for NFTs Down 92% YoY
The cryptocurrency market has come on strong since the start of 2023 with Bitcoin up nearly 80 percent. However, enthusiasm around the NFT market has yet to return, as sales volume for digital collectibles dropped by 64 percent year-over-year in July. Demand for NFTs has also dropped by 92 percent year-over-year, according to Non-Fungible’s Market Tracker.
Why Did The NFT Market Cool Off?
It is no secret that the NFT market has been in a steady decline but there were reasons that contributed to the market crash. Inflated demand, short-term flips, scams, and a lack of regulations all played a role in cooling off the NFT market, according to entrepreneur and NFT investor Gary Vaynerchuck.
One of the biggest cons of the crypto and NFT market are the lack of barriers to entry for operators.
Anyone has the ability to create an NFT, which opened the market up to many scams. At the height of the market, many people lost money from buying into fake NFT projects.
NFT Sale Volume Drops by 64% in July YoY
In July 2022, NFT sales were peaking for a total of $222,593,856. Not even a year later the volume of sales has dropped by over half decreasing to 64% across different platforms including NFT Art, GAmes, collectibles, and Meta Verse.
It’s been a tough seven months for the NFT market. At the beginning of the year, the NFT sales volume was $122,877,584 but has dropped a concerning 35% since, for a total of $43 million.
Demand for NFTs Down 92% YoY
The biggest celebrities like Justin Bieber have taken a huge hit in the NFT crash. With high-profile celebrities taking big losses, there has led to a huge decrease in demand.
At its height, there was way more supply and the demand for the biggest projects was skyrocketing.
It eventually corrected itself and the bubble finally burst, leading to a 92 percent drop in NFT sales YoY. Last year, the number of sales was recorded at 356,246. After the first week in July this year, sales have dropped to 26,539, meaning a decrease of 330,000 in a year for a record 92% drop.
The NFT market is volatile and unpredictable. However, during the boom in 2021 and 2022, NFTs were a hot commodity but don’t expect the market to heat up anytime soon. Until buyers can regain trust in the NFT market, the demand for digital collectibles might not follow Bitcoin and other cryptocurrencies in their attempt to climb back to their all-time highs.
