Sales of NFTs plunged significantly in the third quarter of 2022 as investors kept clear of risk assets amid a challenging macroeconomic environment. NFT sales stood at $3.4 billion in Q3, down from $8.4 billion in Q2. Compared to Q3 2021, NFT sales in Q3 2022 are down 68.2%.<\/p>\n
The non-fungible token (NFT) market crunch continued in the third quarter as sales sharply plummeted to $3.4 billion from $8.4 billion in the earlier quarter, according to blockchain tracker DappRadar. The nearly 60% drop comes as investors continued avoiding risk assets, which have been battered in recent months.<\/p>\n
Year-over-year, NFT sales are down almost 70% from $10.7 billion in Q3 2021. Sales reached a peak of $12.6 billion in January, marking a 73% decrease in just 10 months.<\/p>\n
The latest quarterly report represents a sharp U-turn from 2021 when strong crypto performance encouraged investors to try and cash in on booming NFT prices. The NFT market saw inflows of $44.2 billion in 2021.<\/p>\n
The steep drop comes as investors rotate away from crypto and other riskier investments amid record-high inflation and aggressive interest rate hikes by global central banks. The world\u2019s largest cryptocurrency, Bitcoin, continues trading below the $20,000 mark, down over 50% in the past six months.<\/p>\n
Earlier this year, investors lost more than $800,000 in NFT investments after an NFT marketplace SudoRare disappeared with users\u2019 funds. The project deleted all of its social media accounts after the so-called \u2018rug-pull\u2019.<\/p>\n
The NFT market crunch sent sales on the largest NFT marketplace, OpenSea, down for a fifth straight month in September. OpenSea CEO Devin Finzer thinks the current NFT environment represents an \u201cintersection of both the macroeconomic downturn and the crypto winter.\u201d<\/p>\n
\u201cThe previous crypto winters were a little more isolated to just crypto prices so for that reason, I think it\u2019s wise to be conservative about how long this could last.\u201d<\/p>\n
\u2013 Devin Finzer, CEO of OpenSea<\/cite><\/p>\n However, Finzer was more optimistic when it comes to OpenSea\u2019s long-term prospects, saying the company is sitting in a \u201cgood spot financially.\u201d Finzer believes the market will rebound going forward and views the ongoing slump as a \u201cbuilding phase.\u201d<\/p>\n Earlier DappRadar report showed that OpenSea processed just $9.34 million in NFT transactions on August 28, compared to the May 1 peak of $2.7 billion. The number of OpenSea users also fell significantly last month to roughly 22,000, from almost 60,000 in January 2022.<\/p>\n This article originally appeared on The Tokenist<\/i><\/p>\n Sponsored: Find a Qualified Financial Advisor<\/b><\/p>\n Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.<\/p>\n