NFT Market Cools Down Once Again as Crypto Prices Heat Up
The market for non-fungible tokens (NFTs) showed signs of a cooldown last week, even as the prices of many cryptoassets have been on the rise.
According to a new report from crypto research firm Delphi Digital, activity in the NFT market has slowed down over the past week, with the volume of NFTs traded on Ethereum (ETH) falling 35% week-over-week in USD terms.
Additionally, the total number of unique NFT buyers has fallen more than 20% since last week.
Notably, the firm said that NFT trading activity on other blockchains than Ethereum, including Solana (SOL), Avalanche (AVAX), and Flow (FLOW), has also fallen. “However, Ethereum is still the dominant chain for most NFT activity by a long shot,” the report said.
Delphi Digital further pointed out that,
“These types of slowdowns often follow periods of extreme hype and excitement,” noting that the cycles “are healthy for a market like this, especially one that’s still driven in large part by speculation.”
The slowdown in NFT sales can also be seen in data from other sources, including a monthly view of NFT sales in USD terms from NonFungible.com, which shows a clear downtrend since early February.
Total USD spent on completed NFT sales:
Other indicators for the state of the NFT market -- including the number of active market wallets, primary and secondary sales, as well as the number of unique buyers and sellers -- also show a clear downtrend.
But although most indicators are falling, the average USD amount spent in NFT transactions appears to be moving in the opposite direction.
According to NonFungible.com’s data, the average dollar amount has risen from a recent low of 2,076 on February 8 to 2,857 as of Monday.
Average NFT sale value in USD:
Worth paying attention to, however,
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