Can the NFT market go down? • Benzinga

The summer 2022 market conditions for non-fungible tokens (NFTs) have not been ideal. Many large projects have seen a drastic deterioration in their project price floors as NFT owners return to dollars.

As of June 21, 2022, the floor price, which is the cheapest NFT Bored Ape Yacht Club (BAYC) currently on the market, was around $98,220, down from over $400,000 as recently as late April.

The BAYC collection hasn’t been at this level since October 2021.

At the same time, the floor price of NFTs CryptoPunk, which is considered one of the first projects to come up with the idea of ​​collectible social media profiles, dropped dramatically to $74,000, a low not seen since. the beginning of 2021.

NFT’s monthly transaction volumes reached nearly $5 billion in January 2022 according to data from CryptoSlam, but volumes have been steadily declining since then.

Monthly trading volume with only about a week left in June is $650,461,250 according to data from, down 86.17% since January 2022 in volume.

Although the global economy is struggling, the launch in 2021 of new projects and use cases for the NFT market has only increased.

What was originally a small niche for artists and content creators to monetize their work has now spread to the biggest fashion and entertainment industries in the world.

Some popular celebrities and companies building projects are:

  • Gucci
  • Paris Hilton
  • Gary Vee
  • Snoop Dogg
  • james lebron
  • Adidas
  • Nike
  • Michael Jordan

Can the total NFT market cap drop below $1 billion?

While it is never impossible for the NFT market cap to drop below $1 billion, it is very unlikely. According to recent data from, the total market capitalization of NFT as of June 22, 2022 is just over $12 billion.

For the NFT market capitalization to fall to these levels, a 91.84% decrease in the total NFT market value would have to occur, which would essentially mean that most of the NFT market value has been depleted.

Unless you are an NFT mega-bear, this occurrence is highly unlikely.

Thanks to new use cases, NFTs have only continued to spread into new sectors; new areas include tokenized real estate and digital identities.

Based on market capitalization, the more NFTs that can spread into new industries and reach strong everyday use cases, the greater the growth in NFT market capitalization will be.

Why is the NFT market falling?

To understand why the NFT market is down, it helps to consider the state of the economy globally.

The financial market outlook for summer 2022 is bearish and people are likely to sell riskier assets like NFTs to pay bills and catch up on rent.

NFTs are still a small market with big aspirations, and growth difficulties are to be expected for innovation.

The NFT market is not falling due to a lack of ideas and creativity, but due to a slowdown in the economy on a global scale. Historically, the digital asset market also has a similar correlation with the stock market. As long as the Nasdaq and S&P are down, so will the NFT market.

Although it is currently not possible to shorten NFT collections, you can shorten tokens related to NFTs and metaverse on Huobi and FTX. Some of these platforms are banned in the United States

A non-exhaustive list of NFT and metaverse tokens are Decentraland (MANA), Ape Coin (APE), Sandbox (SAND) and Axie Infinity (AXS).

Shorting and using margin is risky, so it would be wise to educate yourself before trading. An easy way to learn how short selling and the use of margin works is to practice trading stocks on paper.

Can the NFT market cap still reach $100 billion in 2022?

With only six months left in 2022, a nearly 10x increase in NFT market capitalization is unlikely but not impossible. To project into the future, ask yourself some important questions.

  1. What is the overall sales value, production value, and consumption value of NFTs?
  2. What are the NFT market opportunities and threats faced by the market players in the global NFT Industry?
  3. Which application or product can experience greater incremental growth than the others?
  4. What is the market share of these types of applications?

If the production value associated with consumption trends is higher due to the discovery of new applications for NFTs, the NFT market could reach a market capitalization of $100 billion.

On the other hand, such six-month growth would require the NFT market to produce valuable products and applications at an extremely rapid rate. At the same time, NFTs will need to take market share in mature sectors of the economy like real estate for the market to continue to grow.

Where to buy NFTs

If you are looking to buy your first NFT with Ethereum, then a few platforms you can use are OpenSea, Rarible, and Mintable. These platforms have older collections that tend to be seen more as blue chips in the NFT space.

Gas fees or transaction costs can be a barrier to entry for small investors, so other alternatives could be, Axie Infinity and

Will the NFT market continue to crash?

The NFT market has performed poorly over the past month, and deteriorating market conditions have only made matters worse for NFT owners. If the NFT market continues to slump, a tightening of global financial conditions and an even higher level of fear in the markets will likely be the cause.

Tighter financial conditions tend to hurt riskier assets like NFTs, as investors need cash from riskier assets to cover their bottom line. Inflation needs to slow and fear levels need to come down before it makes sense to call for a short to medium term bottom for the NFT market.

Is it a good time to buy NFTs?

The markets seem to be in a state of pessimism, but if you take a look under the hood, you might find that the NFT industry is actually overwhelmingly positive.

Since the start of 2022, major companies have launched projects to bring NFT functionality to the forefront of their giant Web2 user bases.

Meta, the parent company of both owned Facebook and Instagram, is currently preparing features that allow users to post NFTs as profile pictures and new NFTs on the platform. Meanwhile, Twitter also unveiled a new NFT profile picture feature similar to the one unveiled by Meta.

This continued Web2 implementation of NFTs suggests that the long-term outlook for the market is solid and that the current price drop is just a bump in the road.

If you are a strong supporter of the industry, it would be wise to maintain a long-term view of your holdings and invest where there is a strong sense of community and purpose.

cnbctv18-forexlive-benzinga -Sp

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button