Expert calls NFT market correction a ‘silent crash’

Due to the NFT market’s low liquidity, sellers struggle to gauge buyers’ sentiment, so the asking price for their asset can be significantly lower than the purchase price, according to the CEO of Psyops Capital.

i really like @mewn21 phrasing of NFT crash as a “silent crash”

why?

in liquid markets, you can see prices going down every day. in NFT-land, sellers have slower “market reaction”. instead of sellers adjusting prices downwards everyday for a month, it may just -80% “overnight”

— tuba (@0xtuba) March 26, 2021

In more liquid markets, corrections occur daily, unlike the NFT segment, she noted. A representative of the venture capital firm eGirl Capital, who goes by the handle linken, described the situation as a ‘silent crash’.

The minimum offer price for the tokens of one of the oldest and most popular projects in the space, CryptoPunks, has fallen by 40% from its peak. As a result, the NFT punks #8282, bought on February 22 for 42 ETH, was sold on April 3 for 27.99 ETH sold on April 3 for 27.99 ETH. On the next day token #7633 went under the hammer for 16 ETH — the previous owner paid 24.99 ETH for it in March.

Analyst Max Minsker noted the decline in NFT prices on the NBA Top Shot platform, which occurred amid several-fold growth in metrics — the number of buyers, the number of transactions and trading volume.

🚨4/3 NBA Top Shot Market Breakdown🚨

Since Feb 1:

Unique buyers per month: 9x 🚀🚀
Total transactions per month: 3x 📈
Total sales volume per week: 5x 📈📈
Market cap: 2.25x 🤨

Today I spent 3 hours researching the “big picture”

A MEGATHREAD ⬇️⬇️⬇️ pic.twitter.com/GxgPqJJQkT

— Max Minsker (@MaxMinsker) April 3, 2021

However, according to data from NonFungible, overall market sales volume and the number of transactions declined over the past 30 days.

The most expensive purchase in the segment remains NFT Everydays: The First 5000 Days by the artist Mike Winkelmann, known by the pseudonym Beeple. The purchaser, Portkey Technologies CEO Vignesh Sundaresan, paid $69.3 million including fees.