Monthly NFT sales fall below US$1 billion for first time in 12 months

Monthly NFT sales fall below US$1 billion for first time in 12 months

Crypto industry sales are slumping, but it’s not just hedge funds and lenders that have been hit hard by the crypto winter. The NFT industry has also begun to feel the chill.

The troubles at crypto hedge funds and lenders were a center of attention in June, but business in the non-fungible token (NFT) market also got hit, with monthly sales dipping below US$1 billion for the first time in 12 months, according to NFT data aggregators CryptoSlam.

For context, June last year was the same month that Axie Infinity exploded in popularity, putting NFTs and play-to-earn gaming on the map in the process.

Plummeting crypto prices share some of the blame for the poor NFT sales, but unique monthly buyers in June also fell almost 50% from a high of more than 1 million in January and now stand at less than 600,000 for the first time since July 2021.

In another telling sign, the floor price for a Bored Ape Yacht Club — one of the biggest NFT collections — fell below US$100,000 for the first time in over a year in mid-June to a low of US$86,277. That’s almost an 80% plunge from a high of more than US$400,000 in late May.

“The NFT market has not been immune to the crypto market (and business) turbulence and when coupled with [traditional finance] downturn — in particular the tech stocks crash — it is a perfect storm for loss of confidence,” Jonathon Miller, Australian managing director of crypto exchange Kraken, told Forkast in shared written commentary.

The 70% drop this year in the price of Ether, the world’s second-largest cryptocurrency, also influenced NFT trading, as it’s the native token of Ethereum, the most popular blockchain for hosting NFTs. Ether prices traded around US$1,055 on Monday in Asia.

However, after a volatile few weeks, crypto prices held relatively steady over the weekend, with all major coins fluctuating no more than 1% in the 24 hours through Monday afternoon in Asia.

Bitcoin held steady around US$19,300 over the weekend after dropping below US$19,000 for the first time since December 2020 on Friday to change hands at US$19,133 at press time. Amid this NFT market downturn, Kraken is set to join the likes of Binance and Coinbase by opening the waitlist for its own NFT marketplace set for full release in the next few months.

“The seeming collapse of closed book lending businesses may be viewed in the long run as a reminder that open transparent infrastructure is ultimately the foundation upon which a new wave of digital financial tools will be built,” Miller said.

“The projects and businesses that stay as true to this as possible are the ones that can weather the storm,” he said.

Another way NFT marketplaces or exchanges can stand out from the crowd is by specializing and offering unique services, for instance by focusing on sports-based NFTs, according to Anndy Lian, Chief Digital Advisor, Mongolian Productivity Organization, and a blockchain author.

“I think the NFT market could recover faster than the crypto original market,” said Lian, highlighting partnership deals between Binance and Portuguese soccer player Cristiano Ronaldo as a sign of what’s to come.

“All these moves, which cost perhaps hundreds of millions, are telling us that this will be a big strategy,” he added. “We cannot just depend on what you see in crypto native; you need to bring in new blood.”

Original Source: https://forkast.news/monthly-nft-sales-below-1billion-12-months/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Crypto carnage continues! Investors lose over $2 trillion in eight months + Additional insights

Crypto carnage continues! Investors lose over $2 trillion in eight months + Additional insights

I have also added more insights to what I was quoted in The Economic Times.

Anndy Lian said: “The key weakness to crypto is that we are too closely linked to traditional assets. This weakness is amplified by traditional institutions that were here just for short-term gains. The quick outflow of money left us high and dry.

I think the major tokens contributing to this fall started off with the TERRA LUNA and UST saga last month. Then we saw a global economic slow down choked amid inflation and war, which then resulted in weaker demand in Bitcoin from long-term holders on top of higher selling pressure from the short-term holders. This added pressure to Ethereum too, which has fallen close to 28% in the last 7 days. The downstream issues have snowball effects as the two big brothers continue to fall. Today we saw Celsius tanking 70% in 1 hour after they stop withdrawals citing extreme market conditions. Withdrawals also cause liquidity issues and could result in unsustainable APY.

We need to understand that the whole crypto market is tightly knitted together. While many out there are spreading FUDs about Ethereum for instance. They are also indirectly killing themselves. At such times, we need to stay united and make relevant decisions to reduce losses to the investments made in the most logical manner.

The recovery will not be anything soon based on the current market sentiments and statistics. This could be a start to another crypto winter which could last for another 2 years or so.”

 

Crypto carnage continues! Investors lose over $2 trillion in eight months

New Delhi: The carnage in the crypto market has gathered pace with no near-term respite in sight. Considering the latest slide, investors have lost over $2 trillion (about Rs 15.65 lakh crore) over eight months.

If we compare the notional value lost, only eight countries have a GDP more than what the crypto market eroded in less than three quarters. Countries like Canada and Italy have a GDP of little more than $2 trillion, whereas Brazil’s GDP stood at $1.83 trillion.

The total market capitalization (m-cap) of the digital market is marginally above the $1 trillion mark, which was more than $3 trillion at its peak in November 2021.

Bitcoin, the largest crypto token, is barely above the $25,000 level. It has dropped more than 20 per cent over the weekend, with its market cap slipping below $500 billion or half a trillion.

Its largest peer, Ethereum, has barely managed to hold the $1,300 mark, with total valuation just above $160 billion.

Both the tokens are down about 70 per cent from their peaks. Bitcoin’s dominance in the total market cap has been about 47.25 per cent, which shows that altcoins are left with value worth merely a few billion dollars.

Market participants are linking the weakness in the crypto market closely with the traditional asset class.

Shivam Thakral, CEO, BuyUcoin said after the consumer price index reported the highest inflation since 1981, financial markets across the globe have seen a sharp downturn. The rising food, gas, and energy prices are putting tremendous pressure on the crypto market, he added.

“The market is expected to remain choppy in the coming weeks and the globe continues to report high inflation numbers.”

Anndy Lian, Chairman, BigONE Exchange said the weakness is amplified by traditional institutions who were here just for short term gains. The quick outflow of money left us high and dry, he added.

“We saw a global economic slowdown amid inflation and war, which then resulted in weaker demand. There are liquidity issues and could result in unsustainable annual per cent yield.”

Among the altcoins, Curve Dao Token, Nexo, Fantom, Stepn, Waves, Kava and THORChain have taken a big hit. These tokens are down by 20 per cent in the last 24 hours.

On a weekly basis, Convex Finance, ApeCoin, Avalanche, Near Protocol, Axis Infinity, Harmony and The Graph are down by 35-50 per cent. The major part of this correction has been witnessed over this weekend.

Praveen Kumar, Founder & CEO, Belfrics Group said the volatility in the market would continue which would have a significant impact on the valuation of other coins including Ripple, Cardano, Tether, Solana, among others.

The recovery will not be anything soon based on the current market sentiments and statistics, said Lian from BigONE Exchange. “This could be a start to another crypto winter which could last for another 2 years,” he adds.

On the other hand, some experts are suggesting investors to buy the dips to average out their cost and make gains in the longer term. Going forward, I believe the volatility would continue and there would be immense pressure on Bitcoin and other key altcoins as well, said Kumar of Belfrics.

Thukral from BuyUcoin said that the current dip in the crypto prices allows investors to buy crypto at 2021 prices and we expect the seasoned investors to take advantage of the dip.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

 

 

Original Source: https://economictimes.indiatimes.com//markets/cryptocurrency/crypto-carnage-continues-investors-lose-over-2-trillion-in-eight-months/articleshow/92179178.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j