Crypto and especially the NFT space was enjoying a bull run as speculators poured in billions of dollars which pumped up both the prices and profits. But as we approach mid of 2022, things are not looking good at all.
OpenSea, which is one of the biggest NFT marketplaces, saw its sales volume drop from $2.6 billion (May) to only $700 million (June). In January, the NFT sales volume was close to $5 billion, which tells us this drop in NFT sales volume is gradual and worrying.
Is this a sign that NFTs are officially out of favour, and it was just a trend? If we look at the numbers, it does appear to be this way.
In June, the sale of an average NFT was $412, but it was at $1754 in April, which is a major drop and shows a decline in the publics' and investors' interest.
According to experts, the bearish trend in cryptocurrencies is the reason for this negative impact on NFTs. On top of that, the hype and speculation around the NFTs have also started to decrease as people have started to realize that NFTs can't make them millionaires within days.
For the crypto and NFT critics, this crash in sales volume is confirmation that buying such assets was always risky and not practical at all. To give you an example, Jack Dorsey's NFT, which was bought for $2.5 million, now can only fetch bids of a couple of thousand dollars at best.
If we look at the Bored Ape, the average sales price also dropped to $110,000 while it was at $238,000 in January.
So from the looks of it, NFTs are no longer enjoying the hype that money flow that they once enjoyed just a couple of months ago. But if the bull run returns back to the crypto market, then there's a good chance that the public's interest will once again return to the NFT space as well.