Despite, Bitcoin’s bear market having an adverse impact on the crypto ecosystem the NFT boom was supported by a healthy and bullish crypto ecosystem and positive investor sentiment.
Nonfungible tokens (NFT) took the focus stage in the year 2021 as artists, influencers, A-list celebrities, and the sports industry came across a fan engagement tool that empowered the general public to cash in on their success. Though, the propaganda around NFT did not manage to stand its ground as sales dropped to one-year lows amid the bear market of 2022.
The NFT prosperous, which started in early 2021, upheld its grandeur until May 2022 — supported by a healthy and bullish crypto ecosystem and positive investor sentiment. However, Bitcoin’s (BTC) struggle to hold on to its all-time high prices had an adverse impact across the crypto ecosystem.
The NFT ecosystem recorded its wickedest performance of the year in June 2022 as the total number of daily sales fell down to roughly 19,000 with an estimated value of $13.8 million — a number which was recorded back in June 2021.
Last year, daily NFT sales of a parallel amount were measured as impressive as the nascent ecosystem saw mainstream executions across various use cases.
Data from nonfungible.com proved, that the NFT ecosystem witnessed its highest number of daily sales of 224,768 NFTs on Sept. 24, 2021, worth $78.3 million. Yet, the biggest sale in terms of dollar value took place on May 1, 2022, when 118,577 NFTs were sold in a day for $780.4 million.
Some of the important factors negatively impacting the hype around NFTs are falling Ether (ETH) prices, a lack of secondary market demand, and unrealistic gas fees. As a result, over the last three months, the NFT market capitalization suffered a drop of nearly 40% while losing over 66% of its trading volume.
Amid the bear market, crypto entrepreneurs, including Changpeng “CZ” Zhao, are helping governments discover NFT use cases in ID-ing citizens. Social media giant Meta’s Facebook, too, recently announced plans to support NFTs for creators.
A Meta representative exposed that the rollout of NFTs on Facebook would be gradual, beginning with select creators in the United States.
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