Market Capitalization Of Ethereum NFTs Witnesses A Huge Decline In 2022
The performance of the entire crypto industry was on the edge throughout the year 2022. Every segment that the cryptocurrency industry has to offer faced major declines.
Even the non-fungible token (NFT) sector that had recorded huge gains in the year 2021 saw its performance take a huge fall in 2022.
The year 2022 is considered the most damaging and longest-running winter in the cryptocurrency industry. Its impact was enormous on the cryptocurrency industry and it pulled everything down.
Crypto Comeback Pro is the #1 cryptocurrency trading robot for investors! This trading tool has a %88 winning rate on trades and is the recommended trading software for cryptocurrency traders. Try The Trading Software For FREE Today. (Advertisement)
Even the NFT segment witnessed a great demise in its sales in the year 2022. Although things picked up at the end of the year, the entire year had been ruined due to the crypto winter.
Data Shared by DappRadar
A highly reputable on-chain data analyzing firm, DappRadar has gathered information about the Ethereum NFT segment and shared it publicly.
Most of the NFTs are based on the Ethereum network due to its enormity and high adoption rate. The facilities that the Ethereum blockchain has to offer a highly advantageous for the NFT sector.
The data shared by DappRadar reveals that the market valuation of the Ethereum NFT segment has declined tremendously in the year 2022.
The firm has revealed that the market capitalization recorded for the Ethereum NFT sector at the beginning of 2022 was $9.3 billion.
As the New Year (2023) began, the market capitalization recorded for the same segment was down to $3.7 billion. This is a huge upset for the NFT sector not only on the Ethereum network but for the entire crypto industry.
The Ethereum-based NFT sector translates to the majority of the NFT segment. This means that if the Ethereum-based NFT sector is down, the entire NFT industry is facing a decline.
DappRadar has confirmed that it collected the statistics and market capitalizations of some of the major collections of NFTs in the Ethereum network.
To be exact, it collected the data of 81 collections for NFTs on the Ethereum network to come to the conclusion.
ETH Collections Valuation Dipped by 59.60%
Crypto Comeback Pro is the #1 cryptocurrency trading robot for investors! This trading tool has a %88 winning rate on trades and is the recommended trading software for cryptocurrency traders. Try The Trading Software For FREE Today. (Advertisement)
The platform has revealed that they collected and studied the data from the Ethereum NFT segment through their machine-learning algorithm.
It showed that a 59.60% decrease in the market valuation of the Ethereum-based NFT collections was recorded in the year 2022. The information was made public by the platform on February 9, 2023.
What Caused the Major Decline for NFTs?
The information gathered by DappRadar shows that it was the crash of the Terra Network that caused the major decline in the Ethereum-based NFTs market valuation.
Right after the crash took place in May 2022, the overall valuation of the NFT projects on Ethereum dropped by 88% compared to the early 2022 market valuation.
The drop recorded in the NFT sector was similar to the drop recorded in every other sector of the cryptocurrency.
It would not be a correct statement to claim that the drop was caused by the users losing interest in the NFT sector. Instead, the drop in valuation was caused due to the ecosystem of NFTs being tainted by bad actors.
Their wrongdoings pushed the investors and users away from the cryptocurrency industry entirely. The crypto market was dragged down to the point of no early return.
The investors had stopped investing in any crypto segment just because there was a great lack of trust, not because they no longer had an interest.
Crypto Comeback Pro is the #1 cryptocurrency trading robot for investors! This trading tool has a %88 winning rate on trades and is the recommended trading software for cryptocurrency traders. Try The Trading Software For FREE Today. (Advertisement)
Growth of the NFT Sector between 2021 and 2022
The data shows that the between the years 2021 and 2022, the overall market valuation of the Ethereum-based NFT sector surged by 260%.
The most prominent NFT collections launched through the Ethereum network were Degen Toonz, Pudgy Penguins, and Azuki.
These collections reportedly garnered growth rates of 204%, 260%, and 113.89% respectively between 2021 and 2022.
Among all the collections launched on the Ethereum network, the largest and most valued one is Bored Ape Yacht Club which has launched multiple collections.
The total valuation of the BAYC collections accounts for 67% of the total valuation of the entire Ethereum-based NFT segment.
It reportedly witnessed a 64.92% decline in its valuation in the year 2022.
Chip Timing Global is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written by our authors and the views expressed do not reflect the views of this website. Any disputes you may have with brands or companies mentioned in our content will need to be taken care of directly with the specific brands and companies. The responsibility of our readers who may click links in our content and ultimately sign up for that product or service is their own. Cryptocurrencies, NFTs and Crypto Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.