As the global crypto market continues to fall, the NFT market is freezing. The price of Bitcoin, the biggest cryptocurrency in the world, fell to $20,946, an 18-month low. All cryptos are currently falling and are inside the purple. Similar trends are being observed in the NFT regions as sales continue to decline and NFT customers disappear from the NFT platforms.
The sales of NFTs have decreased by 150% since April, according to the CryptoSlam NFT tracker. An NFT now costs on average $192 instead of $589 as it did in April, a 67% decrease in price. From 62 lakh to 27 lakh transactions, the number of transactions taking place in the NFT market has significantly decreased.
For the first time since August 2021, the Bored Ape Yacht Club (BAYC) NFT collection is currently trading below $100,000. Since BAYC NFTs were selling for $200,000 each, the floor price has decreased by 100% since May.
The NFT marketplace had only experienced a massive decline since June 15, when the floor price dropped to $106,000. The dwindling cryptocurrency market, particularly Ethereum, is to blame for the drop in NFTs. NFTs are typically created on the Ethereum Network, which explains this. Ethereum is currently on the verge of reaching the $1,000 threshold. Along with BAYC, a number of other well-regarded NFT collections have seen a drop in their NFT floor prices. For example, Otherdeed lost 12% of its valuation during the past day, whereas Moonbirds has lost 42%.
NFT sales, meanwhile, fell to $4.6 billion in January. The NFT sales were $2.44 billion at the end of March, down 53% from the previous month. The information showed that the number of unique buyers decreased by 66.5 percent from 9.98 lakhs in January to 6.4 lakhs in March and 3.81 lakhs in April.
Bill Gates has criticized the idea of NFTs, calling it “100% based on greater fool concept.” According to the principle, even assets that are overvalued can be profitable if there are people eager to purchase and sell them.
At a TechCrunch-sponsored event on climate change, Gates gave a speech and stated that he preferred to invest in real estate or “a company that manufactures stuff.” The co-founder of Microsoft declared that he did not own any cryptocurrency. “I’m not a part of that. Gates asserted, implying that he was equally suspicious of investments intended to “escape taxation or any form of government restrictions. Gates also claimed that he is neither short nor long in either of these things.