Q3 NFT trading sales volume is down 60% from Q2 2022

The third quarter's sales of non-fungible tokens (NFTs) have dramatically decreased, according to NFT market statistics, highlighting the ongoing effects of the overall crypto winter that started in mid-June this year.

NFTs are assets that use blockchain technology to represent ownership of digital content like pictures, films, or items from online games. Following the broad market bull run, which saw several digital assets reach new all-time highs, these digital assets gained attention in 2017.

In Q3 NFT sales fell by 60%

Unfortunately, because to the broad market collapse, which caused many non-fungible tokens to lose more than 70% of their floor values, sales of these digital assets have fallen down significantly. Even the most valuable cryptocurrency, Bitcoin, which is now priced at $19,000 as opposed to $69,000 in November, was not immune to this market drop.

The third quarter of 2022 saw $3.4 billion in NFT sales, down from $8.4 billion the previous quarter and $12 billion at the market high in the first quarter of the year, according to DappRadar, a blockchain data aggregator. These numbers indicate a roughly 60% decrease in Q3,2022.

The NFT sector profited from rising cryptocurrency prices and investors' enthusiasm for high-risk investments in 2021, but these circumstances have significantly changed as central banks have raised interest rates in search of income to support economies in the face of recent high inflation.

OpenSea Reduces Even More in September

OpenSea, the biggest NFT marketplace, continued to experience the effects of the crypto winter in September, falling for the fifth consecutive month. Devin Finzer, CEO of OpenSea, commented on September performance in a brief interview with Reuters.

“I think what’s unique about this environment is it’s the intersection of both the macro economic downturn and the crypto winter. The previous crypto winters were a little more isolated to just crypto prices so for that reason, I think it’s wise to be conservative about how long this could last.”

The senior executive said that the NFT market is in a strong financial position before summing. He views the current market collapse as a "building phase" and is optimistic about the long-term prospects of NFTs.

Thanks to Dominic Kimani at Business 2 Community whose reporting provided the original basis for this story.