The non-fungible token (NFT) market has recently witnessed significant price fluctuations, leading to a period of capitulation for many NFT collections. As the market evolves, it becomes evident that a majority of these collections are currently experiencing a bearish trend.
Majority of NFT collections bearish
Analyzing data from IntoTheBlock, a prominent blockchain and cryptocurrency data analytics firm, it is revealed that only three out of the top 10 most valuable NFT collections based on market capitalization have shown gains in Ethereum (ETH) over the past month. CRYPTOPUNKS (3.53%), Azuki (3.76%), and Autoglyphs (0.56%) are the sole collections that have managed to stay in the green during this 30-day period.
Taking a broader perspective, it is observed that out of the 20 most valuable NFT collections based on market capitalization, only four have demonstrated an increase in value. This suggests that a significant majority of NFT collections are currently facing a bearish market environment. Notably, some collections like Moonbirds and Doodles have plummeted close to their all-time lows, experiencing a depreciation of over 80% in ETH value from their peak levels.
While concerns may arise regarding the state of the NFT market, it is crucial to acknowledge that this market is still relatively new and constantly evolving. Volatility is not uncommon in emerging markets, and the NFT market is no exception.
Curiously, the beginning of April saw a decline in crypto-related US trademark applications for the year 2023. Specifically, NFT-related trademark applications witnessed a substantial decrease of about two-thirds compared to the same period in 2022. The US Patent and Trademark Office (USPTO) recorded only 885 such trademark applications in the first quarter of 2023, a notable drop from the 2,530 applications received in 2022.
Back in September, as we reported on Zatrun.com, it was also reported that monthly NFT trading volume had fallen for the fifth consecutive month, down 97% from its peak. At the same time, a 2022 study revealed that over 30% of crypto users said they would ‘never buy’ an NFT.
As the NFT market continues to evolve, it is experiencing a bearish period with most NFT collections losing value. However, it is important to remember that the market is still new and emerging and volatility is not uncommon in such markets. The decline in NFT-related brands and trading volumes may be a cause for concern, but it remains to be seen how the market will develop in the future.
Furthermore, as previously reported on Zatrun.com in September, monthly NFT trading volume had been declining for five consecutive months, plummeting by 97% from its peak. Simultaneously, a study conducted in 2022 revealed that more than 30% of crypto users stated they would never invest in NFTs.
As the NFT market continues to develop, it is currently facing a bearish period characterized by declining values across multiple collections. However, it is crucial to keep in mind that this market is still in its nascent stages, and volatility is an inherent aspect of emerging markets. The decline in NFT-related trademark applications and trading volumes may raise concerns, but the future trajectory of the market remains uncertain and subject to further development.
Despite the current bearish period and declining values in the NFT market, there are still optimistic signs for its future. While a majority of collections may be experiencing a downturn, it’s important to remember that the NFT market is relatively new and subject to fluctuations. The market’s potential for growth and innovation remains intact, with new artists, creators, and platforms continuously entering the space. Additionally, institutional interest in NFTs is growing, with major art institutions and celebrities embracing this new form of digital ownership. As the market matures and regulatory frameworks become clearer, it is likely that the NFT market will find stability and regain momentum.