DappRadar Reports Shows Over 59% Loss in Ethereum NFT Market Cap
10 Februar 2023 - 4:20PM
NEWSBTC
All sectors of the crypto and NFT industry were heavily impacted by
the 2022 bear market. Many crypto assets, including Bitcoin, fell
declined drastically within that period, reflecting the
adverse effect of the bearish trend. Also, cryptocurrencies saw low
trading volumes and market capitalization, impacting the global
industry cap. So it is not strange to discover a spill-over effect
on the NFT market, as indicated in a new DappRadar report.
According to DappRadar, Ethereum NFT market capitalization dropped
in 2022. This report is not surprising, given that the market
hasn’t recovered from the crypto winter. Related Reading: Coinbase
Exec Accuses Binance Of Crypto Price Manipulation Terra And FTX
Implosions Led To NFTs Value Decline, Says DappRadar In detail,
the DappRadar report noted that the Ethereum NFT market cap
recorded a 59.60% decline early this year. The market cap for 81
Ethereum NFT collections went from $9.3 billion at the start of
2022 to approximately $3.7 billion by the end of 2022. DappRadar
cited the May 2022 Terra Luna implosion as the primary cause of
massive loss in market capitalization starting from June 2022. Per
the explanation, the decline in the non-fungible tokens market cap
was not due to a lack of investors’ interest but due to
manipulations by bad players in the crypto space. It could also be
the most probable cause of the woes of the broader crypto industry,
which escalated with the FTX crisis in late 2022. Around the
time of the FTX collapse, the entire non-fungible tokens space
experienced a heavy blow after the global crypto market took a hit.
The chart below represents the performance of the NFT market
against BTC, ETH, and SPX from January to December 2022.
Following the chart, there was a sharp decline in the NFT market
from May down to December 2022, which also represents the period
when the Terra collapse happened. Related Reading: TRON As
Currency: Kingdom Of The Netherlands To Adopt TRON As Legal Tender
Outlook Of The NFT Market In 2023 DappRadar’s report also noted
that a few NFT projects launched between 2021 and early 2022
experienced up to 260% growth in market capitalization. Some of
these projects include the Azuki, Pudgy Penguins, and Degen Toonz
collections, whose market capitalizations increased by 113.89%,
260%, and 204%, respectively. Newer NFT projects that started
after the Terra Luna collapse include the Potatoz, Renga, God
Hates, and DigiDaigaku. Potatox’s market cap grew by 143.68%, God
Hates NFT by 1,653.28%, Renga by 211.63%, and DigiDaigaku by the
growth of 209.88%. These NFT collections observed an impressive
increase even though Ethereum NFTs saw a nearly 60% decline in
price over the past year due to the market downturn. However, while
other Ethereum NFTs declined, Bored Ape Yacht Clube collections
dominated the market. The DappRadar report also suggests Yuga Lab’s
Bored Ape Yacht Club (BAYC) NFT project dominated the Ethereum NFT
market, becoming the leader in the NFT space. BAYC
collections accounted for up to 67% of the total non-fungible
tokens market volume on Ethereum. However, even though Yuga Lab’s
BAYC dominated the Ethereum market, its capitalization recorded a
64.92% decline from $2.6 billion in early 2022 to $934 million by
the end of 2022. But despite this decline, Yuga Labs still acquired
the two largest NFT collections in the crypto market; CryptoPunks
and Meebits. Feature image from Pixabay, Chart from TradingView
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