One industry watcher says there is no need to panic despite the fact that NFT sales have declined significantly in March.
In the month of March, unique monthly non-fungible token (NFTs) buyers dropped by more than 30%, the second-consecutive monthly decline since the record set in January.
NFT sales fell below US$2.2 billion in March according to a data aggregation. The last time that happened was in July 2021, when sales were US$1.20 billion.
As the month came to a close, the market had a market value of US$2 trillion. The market was trading below that for most of March.
Yehuda Petscher believes that there is an inverse correlation between the two asset classes. According to him, investors are more likely to buy NFTs when the absolute value of cryptocurrencies is lower.
“The buyers are still there — I think they’re just being a little more discerning with what they put their funds into,” Petscher told Forkast. “People are just kind of waiting and holding and seeing if the scene’s changing a little.”
In March, the Bored Ape Yacht Club (BAYC) creator Yuga Labs teased its own metaverse Otherside featuring popular NFT avatars. NFT avatars represent their owners.
In March, BAYC more than doubled its sales and transactions, making it one of the most popular NFT avatar collections.
The World of Women Galaxy collection sold more than $70 million units in just a week.
Up-and-coming Blockchains are set to shake up the pecking order in April, as NFT trading activity may not stay dormant for long. The third-largest chain in sales volume has been confirmed by Open Sea. The integration will occur in April.
Petscher expects the adoption of OpenSea to open the flood gates to the NFT collections in Solana.
One of the highest valued exploits in the history of the industry was suffered by Ronin, which had a hack worth over $600 million. The upgrade for the world’s top NFT collection in sales volume was delayed by the ethereum sidechain.
Sky Mavis announced that it will be delaying its Origin upgrade to April, which is intended to onboard more players to its Gamefi economy by offering free starting Axies, which currently requires as much as US$300 in cryptocurrencies.
“If this is a bear market, I’m really excited for what the bull will look like,” Petscher said. “It is pretty exciting even in the slower times.”
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