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NFT Sales Have Dropped To $63 Million In The Last Week, Has The Bubble Burst?

Why is the NFT market so quiet right now?



#nft #nfts

The NFT market was a hive of activity earlier this year. Non-fungible tokens have become the next big thing in technology for gaming firms, tech titans, fashion and shoe companies.

Three months later, however, NFTs are no longer being addressed, with major publishers avoiding them in the wake of significant issues and a substantial reduction in the NFT market as a whole.

In actuality, as artists, investors, and entrepreneurs flock to the still-emerging Web3, total NFT sales have topped $23 billion in the last year.

Why is the NFT market so quiet right now?

On the NFT front, all is quiet

NFT sales are starting to suffer as a result of the recent bitcoin sell-off. According to, sales in the previous week totaled $63 million. This is down from last week’s $168 million in NFT sales. In early January, weekly NFT sales peaked at around $1 billion.

The world’s largest NFT trading platform, OpenSea, has seen daily NFT trading volume fall by 80%, resulting in what the media has nicknamed “the great NFT sell-off.”

The daily transaction volume for NFTs on OpenSea fell by 80% to $50 million in March, compared to $284 million in February, according to Financial Times statistics.

The decline in OpenSea Volume. Source: Financial Times

The NFT tracker DappRadar on OpenSea likewise shows a drop in overall traders and volume. Overall trading volume has dropped over 67 percent in the last 30 days to $2.6 billion (an incredible sum that is more than some gaming companies make in a year), with traders down 23 percent to 489,796 people.

What’s more astonishing is that millions of dollars and cryptocurrency are still changing hands-on OpenSea on a daily basis, even amid the “great NFT sell-off.” On average, people are still spending tens of thousands of dollars on NFTs, but evidence suggests that the frenzy is waning.

Is the bubble about to burst?

According to Bloomberg, the NFT market is starting to cool. Nonfungible tokens’ average market value has dropped significantly, from a peak of $6,900 at the start of the year to roughly $2,000 presently.

Global instability and political upheaval are most likely to blame for the overall decrease.

ETH/USD jumps to $2,700. Source: TradingView

Some collectors are starting to run out of money. One user sold a Bored Ape Yacht Club NFT for $224,000 today, a $67,800 loss, according to Fortune.

Increased scrutiny from US regulators could possibly be to blame for the decline. The Securities and Exchange Commission (SEC) announced this week, according to a Bloomberg report, that it is investigating whether NFTs are securities and should be regulated as such.


According to Music Ally, Spotify has begun testing NFTs on its platform

If a trial deployment goes well, artists may soon be allowed to market their non-fungible tokens (NFTs) on Spotify, according to Music Ally.



Spotify, the most recent tech business to join the NFT bandwagon, entered the web3 world earlier this month with the introduction of “Spotify Island” on Roblox on May 3. Spotify will now test NFTs on the platform to specifically selected US consumers, starting with a single trial selection of artists, including Steve Aoki and The Wombats.

Users will have to purchase NFTs through an external marketplace, thus they won’t be able to sell them directly. As part of the trial, Spotify has stated that it will not take a portion of the sales.

Simultaneously, customers have stated that Spotify is sending out surveys and even paying some people to talk to team members about their feelings regarding NFTs and web3. Questions concerning sentiment, cryptocurrency purchases, and why people acquired NFTs have been circulated on Twitter. Some poster responded with mockery to the queries.

Since March, when Spotify placed two job offers for working on early-stage web3 projects, rumors have circulated that the firm was interested in entering the web3. The announcement comes only days after Meta revealed that it would begin testing digital collectibles and NFTs on Instagram as well.

By the time of publication, Spotify had not responded to a request for comment from The Block.

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Square Enix intends to issue tokens and make a significant investment in Web3 gaming

By investing in blockchain gaming infrastructure, the big game producer is altering its business strategy to include a stronger NFT environment.



Square Enix announced in its first-quarter results report that as part of its medium-term business strategy in 2022, it will include nonfungible tokens (NFTs) into more game goods.

According to Square Enix’s most recent earnings report, the company manages $3 billion in assets. The company controls the Final Fantasy franchise, which it sold for $300 million on May 3rd.

According to the report, the company began testing NFTs in February this year on the Shi-San-Sei Million Arthur game. If the pilot program is a success, the game’s NFTs will be renewed for a second season, and the company will expand its NFT and blockchain activities.

SE wants to provide regulatory clarity and norms for blockchain gaming, address scalability in NFT economies, and consider forming a corporate capital venture unit, among the top priorities of its blockchain domain projects.

The company also announced that it intends to create an overseas organization that will be responsible for “issue, administering, and investing our own tokens,” implying that the company will begin to build a large gaming-token economy.

SE has been exploring its options in the blockchain gaming market with the help of Web3 gaming and metaverse venture capital firm Animoca Brands. As SE digs deeper into the ecosystem, collaboration between the two companies is expected to deepen.

Square Enix’s gaming clout, according to Animoca’s executive chairman Yat Siu, will only help the company establish a blockchain gaming presence. On Monday, he said to Cointelegraph,

“Square Enix has long talked about the possibilities of blockchain games, so it understands it better than most of the traditional gaming titans.”

The third objective of the report’s medium-term business strategy is to invest in and monetize blockchain, artificial intelligence (AI), and cloud computing. This aligns with CEO Yosuke Matsuda’s stated desire in January to increase his company’s involvement in such technologies.

Despite a broad cryptocurrency market dip in 2022, the appeal of Web3 and NFT gaming has remained strong. On Saturday, according to market tracker DappRader, there were roughly one million daily active gamers, nearly the same as on January 1.

Gamers, on the other hand, aren’t spending as much as they used to, with total sales volume for NFT game items falling 88 percent from $70 on January 1 to $8.7 million on Saturday.

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Ukraine’s Ministry of Digital Transformation has approved a charity NFT initiative to aid military operations

On Thursday, Mykhailo Fedorov, Ukraine’s Vice Prime Minister and Minister of Digital Transformation, tweeted his support for Avatars for Ukraine, a non-fungible token (NFT) project that benefits Ukraine’s humanitarian and defense efforts.



The project includes 70 digital artworks based on Ukrainian imagery and resistance to Russian forces that evolved as a result of the Russia-Ukraine war. All earnings from the sale of digital art go to support Ukrainian war efforts. The Ukrainian Ministry of Digital Transformation has approved Avatars for Ukraine, and the first NFT will be released on May 19.

This isn’t the first time Ukrainian officials have used blockchain technology to help fund war activities. The Ukrainian government opened a website in April this year where people could purchase and trade NFTs to support Ukraine’s military efforts, as well as raise over $100 million in crypto donations.

Avatars for Ukraine also joins a growing trend of NFT projects assisting in the donation of monies to charity, with some or all of the proceeds of NFT art going directly to the charity.

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