The end of 2021 was the peak of the bull market, a time when ETH was at $4500 and NFTs were pumping. Most collections were profitable due to the thriving market and available liquidity. However, at the beginning of 2022, the market slowed down, and investors began to see that. The days of 10x mints have stopped, and macroeconomic conditions have been poor, leaving many concerned about the future of NFTs.
On July 23rd, OpenSea saw a collapse in volume among blue chips within the space. Only 1800 ETH had been exchanged between iconic sets such as Bored Ape Yacht Club, Doodles, Clone X, and CryptoPunks, marking the lowest volume since November 2021. Interestingly, most of the collections that contributed to the 1800 ETH had not launched in November, meaning we’ve seen less volume, even though more valuable assets are available compared to 2021.
OpenSea volume collapsed among top sets yesterday.
Just 1800 ETH between these sets:
BAYC, MAYC, BAKC, Otherdeed, Doodles, Azuki, CloneX, Punks, Meebits, Moonbirds, WoW, CoolCats, VeeFriends
Last time this metric was so low was November, when many of these sets didn't exist pic.twitter.com/6lT5NlDa35
— NFTStatistics.eth (@punk9059) July 24, 2022
On top of macroeconomic conditions, the collapse of LUNA, the fall of 3AC, and the insolvency of multiple crypto brokerages have added to the list of self-inflicted blows that have negatively affected both crypto and NFTs. Blue-chips such as Clone X, Azuki, and Doodles have all fallen below a 10 ETH floor, disregarding the recent ETH pump.
Whether web3 continues down this road or not, it’s evident that NFTs and crypto have taken a significant knock due to macroeconomic conditions and over-leveraged companies within the space. Many have seen the latest pump as a breakout. However, reputable investors warn that there is still more damage to come.
