ETH - Should Ethereum Investors Be Concerned By the Collapse of the NFT Market?
The most popular blockchain for NFTs is Ethereum (CRYPTO: ETH) , so it makes sense that anyone investing in Ethereum should be paying attention to the collapse of the NFT market. By some estimates, 80% of all NFTs are traded on the Ethereum blockchain, and the two most famous NFT collections -- CryptoPunks and Bored Ape Yacht Club -- were created on it.
While NFT activity appears to have peaked in early 2022, its slowdown has been especially dramatic this summer. Some NFT marketplaces are turning into ghost towns. Daily transaction volume on OpenSea (the most popular NFT marketplace) is down by 99% over the past 90 days. Floor prices for Bored Apes are down more than 50% over the past 90 days. Some tech companies are even trying to distance themselves from the term "NFTs" entirely, preferring to call them "digital collectibles."
If there is any silver lining here, it's that Ethereum seems to be holding up much better than other blockchains where people are minting, buying, and selling NFTs. The place to look is DappRadar, which has detailed data on transaction volumes, numbers of traders, and numbers of sales. And you can also zero in on specific blockchains for side-by-side comparisons.
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Should Ethereum Investors Be Concerned By the Collapse of the NFT Market?