Experts have warned everyone about it, and sadly that day has come. Yes, folks, the non-fungible token (NFT) bubble has burst, and this does not bode well for the entire digital token market that has since experienced a big selloff that gutted over 50 percent of their value in a month's time.
NFT Stocks, Value Plummet 90 Percent Since May Peak
NFT sales plummeted 90 percent, Protos noted, reflecting a major letdown since its peak on May 3 when it reached $102 million in sales for a single day and $170 million during the seven-day period at that time. NonFungible.com data cited by Protos revealed that only $19.4 million in NFT sales were processed for just the past week.
This would mean lower interest in NFT in general, as activity dipped in all sectors of the NFT market--from games and art to even sports, Kotaku noted.
Protos saw that NFT art sales plunging from single-day sales in millions to only $3 million over the past week, and this includes primary and secondary sales of the items
It also reported that the number of active NFT wallets, which are used to buy these tokens, has dropped from 12,000 to 3,000.
Crypto-Collectibles the Most Resilient
Amid this steep slide in NFT value, crypto-collectibles remain as the most resilient, with $9.2 million in sales the past week, which accounts for nearly half of the entire NFT market, Protos said. They constitute the largest ecosystem for NFT sales in the primary and secondary markets.
NonFungible.com data showed that the NFT bubble had lasted for four months, and it just popped big time.
Amongst the NFT items listed, sports memorabilia still seemed to pack a strong punch, staying a close third to the crypto-collectibles and surpassing NFT art in popularity. But there could be an explanation for this, according to OnlineGambling.com.
The study looked at a limited number of NFTs, especially sports items, the site claimed. It does not include big sports names such as the officially licensed digital collectibles NBA Top Shot or Topps MLB, and has no current sales data for those listed in its study, such as horse racing-focused Zed Run, OnlineGambling.com added.
NFT Value: Sports Memorabilia Suffers Dip
It stated that even sports NFTs experienced declines. For one, MarketRanks.com MR 100--which is an index based on the 100 particular moments on NBA Top Shot-- revealed that the said Sports NFT has seen a rapid decline since its launch on May 8, falling a sharp 49 percent. The same goes for Topps MLB, which has also faced a serious sales dip. But despite these, the demand remains high due to a passionate cards investors, allowing it to live through the NFT crash.
Even if indeed the bubble has burst, NFT sales activity will continue and proponents will certainly push it for the long haul. However the mindless media hype over NFTs has ended and the questionable rush for a quick buck gone forever.