Indeed, the NFT sector has attracted great interest from the community throughout 2021, generating record transaction volumes in August as unique digital collectibles that are regularly sold at prices in excess of $ 1 million.
Typical of the crypto ecosystem are dynamic sectors that can cool off in a matter of hours or days, and that seems to be the case with NFTs.
NFT sales by platform | Source: Dune Analytics
According to data from Dune Analytics, the total volume of NFTs traded in the top NFT markets has declined significantly since September 2nd and has been hit hard by the correction in the broader market due to Bitcoin’s leadership this week.
This decline in volume is most clearly reflected in the top 5 NFT projects traded on OpenSea, all of which recorded significant declines. Loot is an exception, but it’s a relatively new venture and also took part in the $ 70,000 Airdrop to Owners last week.
Top 5 NFT projects by volume | Source: OpenSea
The minimum price of NFT has also fallen sharply. Data from Dune Analytics shows that the floor price per NFT peaked at 1.02 ether but has since fallen to 0.37 ether due to a market downturn and temporary interest rates.
NFT minimum price | Source: Dune Analytics
It should be noted that this metric may not be entirely accurate as the reserve price can be affected by listing newer projects in the market and selling them at a lower price.
Many top projects, like CryptoPunks and EtherRocks, are still selling at high prices and this shows that the demand for premium projects is still there.
Bought EtherRock 73 for Ξ790 Ether ($ 2,607,584.60)
10 h 50 min ago (Sep-07-2021 20:03:49 + UTC)
– EtherRock Prize (@etherrockprice) September 8, 2021
The NFT area is still in its infancy
It’s also important to remember that the entire NFT field is still in its infancy and is just beginning to enter mainstream conversations.
A good example of this dynamic is the Bored Ape Kennel Club 101’s NFT auction at Sotheby’s, which sold one of the rare collectibles for 600 ethers, valued at $ 2.25 million at the time of sale. This shows that the demand for premium projects remains high and NFT prices could rise as the broader crypto market recovers.
Christie’s is too support continue to grow the NFT sector by holding an upcoming curated auction of Art Blocks slated for October 1st.
With well-known and respected institutions supporting the NFT sector, there is potential for continued mainstream adoption and the current retracement to simply be part of the normal crypto market cycle.
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According to Cointelegraph