While there’s plenty of anecdotal evidence that the NFT market is beginning to calm down, there’s no bigger red flag than what’s happening with sales and prices
The average selling price for non-fungible tokens has fallen to less than $2,000 from an all-time high of nearly $6,900 on Jan. 2, according to industry data tracker NonFungible. The data shows that total daily sales on March 3 were about $26.2 million. Its balance sheet was $160.2 million as of Jan. 31. Average selling prices have fallen by about 30% since Russia attacked Ukraine on February 24.
According to NonFungible, the average daily price of non-fungible tokens — often digital art like cartoon monkeys and penguins — has risen from $128 to nearly $4,000 over the past year. OpenSea, the largest NFT marketplace, had its best January ever.
Since then, prices have fallen steadily as concerns over waning stimulus during the pandemic and geopolitical tensions weighed on the broader cryptocurrency market. This decline has only accelerated since Russia invaded Ukraine.
Another factor that could contribute to the decline is the possibility of increased regulation. The U.S. Securities and Exchange Commission is reviewing NFT creators and the markets they trade on to determine whether certain assets violate the agency’s rules, Bloomberg reported Wednesday.
Sales of some of the most popular brands are declining rapidly. According to data tracker DappRadar, the NBA’s top shot dropped 26% last week, while Axie Infinity’s dropped 15%. While these flagship NFT sales have been put on hold, the drop has not been widespread. According to DappRadar, sales of Bored Ape Yacht Club NFTs have increased by 59% in the past seven days, while CryptoPunk sales have increased by 118%.