NFT Collections Experience a Bearish Period

The non-fungible token (NFT) market has been on a rollercoaster ride in terms of price action over the past few months. As the market continues to evolve, it appears that many NFT collections are experiencing a period of capitulation.

Majority of NFT collections bearish

Data from IntoTheBlock, a leading data analytics firm specialising in blockchain and cryptocurrency, shows that only three of the top 10 most valuable NFT collections by market cap have gained in Ethereum (ETH) over the past month. CRYPTOPUNKS (3.53%), Azuki (3.76%) and Autoglyphs (0.56%) are the three collections currently in the green over the past 30 days.

Overall, with only four of the 20 most valuable NFT collections by market capitalisation rising, the trend suggests that the vast majority of NFT collections are currently experiencing a bearish period. In particular, some collections, such as Moonbirds and Doodles, are currently trading close to their all-time lows, having lost over 80% of their value from their all-time highs in ETH terms.

While there may be some concern about the state of the NFT market, it’s important to remember that the market is still relatively new and evolving. It’s not uncommon for emerging markets to experience periods of volatility and the NFT market is no exception.

Interest in NFTs waning

Interestingly, at the beginning of April, crypto-related US trademark applications took a nosedive in 2023. NFT-related trademarks were down by around two-thirds compared to the same period in 2022, as the USPTO received just 885 such trademark applications in the first quarter of 2023, compared to 2,530 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.