The non-fungible token (NFT) market has experienced a significant downturn, losing nearly half its value in the past 30 days, even as trading activity saw an increase in October.
Data from CoinGecko indicates that the global NFT market capitalization dropped from approximately $6.6 billion on October 5 to $3.5 billion on Wednesday, representing a 45% decrease within a 30-day period. This slump occurred despite a rise in sales count during October, which temporarily boosted floor prices for blue-chip NFTs.
According to CryptoSlam, NFTs recorded a total sales count of around $631 million in October, a 13% increase compared to September's $556 million. Bitcoin and Base NFTs exhibited resilience over the last 30 days, with sales volume increasing by 9% and 24%, respectively.
Conversely, networks such as BNB Chain and Polygon faced the most substantial declines, with drops of 82% and 86%, respectively. Ethereum, the leading network in terms of NFT sales volume, experienced a 25.5% decrease in the last 30 days. Solana, Immutable, and Avalanche saw declines ranging from 31% to 35%.
Blue-Chip Volatility Highlights Fragile NFT Valuations
The recent market correction has impacted even the most established NFT collections, as indicated by NFT Price Floor data.
Over the last 30 days, CryptoPunks experienced a 40% decrease in trading volume. Its floor price fell from approximately $214,000 on October 5 to $117,000 on November 5.
Moonbirds saw a similar retracement, with trading volume declining by 63% and floor prices more than halving, from $14,700 to $6,500, within the same time frame.
Some collections, however, recorded higher trading volumes but still witnessed drops in their valuations.
The Bored Ape Yacht Club (BAYC) and Pudgy Penguins both reported volume increases of 30% and 83%, respectively. Despite these gains, their floor prices experienced significant drops. BAYC's floor price decreased from $36,700 to $19,500, while Pudgy Penguins fell from $43,000 to $18,340.
This discrepancy between increased trading and sales volume and declining valuations underscores the speculative nature and sensitivity of liquidity in the NFT market to broader cryptocurrency sentiment.
Major Players Expand Beyond NFTs
As the NFT market cools, major industry players are recalibrating their strategies.
In October, OpenSea, a digital collectible marketplace that has led the space in the last 30 days with over 522,000 traders, announced its expansion into a universal on-chain trading hub.
While the company is now focusing on all on-chain activities, it has denied claims of pivoting away from NFTs.
Meanwhile, Animoca Brands, another prominent entity in the NFT space, has confirmed its plans to list on Nasdaq. This move signals the growing acknowledgment of Web3 gaming and metaverse companies by traditional capital markets, even as secondary NFT markets contract.