Has the NFT market peaked? Depends on who you ask

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Since the NFT market’s peak on 31 Jan, more than half of its unique active buyers and sellers have left.

“I imagine a lot of people jumped in after the large price increases last year and may not have seen the profit they expected,” John Thetford, a 31-year old retail investor who got into NFTs last year, told Yahoo Finance.To be sure, total transactions this year could outpace last year’s $43 billion even if monthly totals remain in line with March. That’s largely because investors spent $20.4 billion, nearly half as much as all of 2021, in the first two months of 2022.

“We could attribute drops to people looking to capitalize on NFT gains during these uncertain times," Herrara said over email, "and move their holdings to ‘safer,’ more liquid digital assets like BTC, ETH, and stablecoins.”This content is not available due to your privacy preferences.

Chief among the winners seeing the most volume during this consolidation are projects like Azuki, the Bored Ape Yacht Club , World of Women, and Doodles, four high value collections selling at a minimum price of over $40,000. During the same time, BAYC creator Yuga Labs has acquired the IP of two of the other most popular NFT collections. It gave 10,000 units of the new BAYC cryptocurrency, ApeCoin, to its NFT owners . It closed a $450 million seed round that earned it a post-money valuation worth $4 billion. And finally, it released a trailer detailing plans of building its own NFT-fueled metaverse over the coming years.

 

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