An analysis of 81 NFT collections on the Ethereum blockchain, conducted by Dappradar on February 9th, revealed an overall decrease in market capitalization for 2022. Although losses were recorded across all categories, not every collection was equally affected.
Of Course, The Drop In Ethereum Price Is Also A Big Factor In This Drop In Nfts
According to Dappradar, Ethereum’s non-fungible token (NFT) market capitalization plummeted 59.6% in 2022, dropping from a peak of $9.3 billion at the start of the year to just $3.7 billion by its closing days. It appears that this devaluation was partially attributed to Ether’s price drop – down 60% for 2020 – which undeniably influenced NFT collections‘ value as well.
In February of 2022, the NFT market capitalization peaked at an astronomical $19.1 billion, surpassing Bitcoin and Ethereum in its performance until Terra’s implosion that May. But by June, it had dropped a staggering 88% to reach its all-time low of only $2.2 billion when FTX sought bankruptcy protection; however, since then, there has been a resurgence with a 68% climb through December 22nd year-end figures. The overarching factor being attributed here is not necessarily indicative of this novel asset’s worthlessness but rather of fraudulent traders and nefarious marketplace manipulations, according to experts’ statements: “This NFT market recession is not a reflection of the usefulness of NFTs, but is brought about by unscrupulous traders and market manipulation.”
Yuga Labs Had the Most Market Share
In 2022, Yuga Labs dominated the NFT market with their Cryptopunks and Bored Ape Yacht Club NFT collections, possessing 46.7% of the total share. By stark contrast, The Azarded Collection experienced a massive 86.15% dip in market capitalization – the sharpest drop among all Yuga Lab products. Fortunately for investors looking to capitalize on digital collectibles launched that same year, three other non-Yuga Labs’ offerings saw clear success: The Azuki NFT collections grew 113.89%, Puzzy Penguin rose 260%, and Degen Toons had a notable 204% uptick in value by early 2022!
After Terra’s collapse, the NFT collections have performed remarkably well; Potatoes have seen a 134.68% increase in value while Brick experienced growth of 211.63%, and Dejidaigaku (+209.88%) plus God Hates NFTies seeing gains of 1653%.
The report also pointed out the diminishing share that collectible NFTs had within the whole market – previously dominating with over 90% in 2022 yet dropping under 75 percent by January 2023. In this same period, their trading volume amassed $870 million!
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