Over the past 30 days, sales of non-fungible tokens (NFTs) fell by about 20-fold. CNBC reports, citing data from analytics service Nonfungible.
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On May 9, NFT daily sales reached $176 million, and by June 15 the figure had fallen to $8.7 million.
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“Each time a trend grows rapidly, there is a relative pullback that largely signals market stabilization,” explained Gauthier Zuppinger, Nonfungible’s chief operating officer.
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The head of the NFT platform S!NG, Jeff Osler, linked the event to a correction in the cryptocurrency market.
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Nadia Ivanova, chief operating officer of research firm L’Atelier, noted that the market treated NFTs as speculative assets worth millions of dollars.
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“Such markets are volatile and can dry up. NFTs have long-term prospects. As augmented and virtual reality technologies develop, people will spend more time and money virtually,” she added.
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In April, the average NFT price fell by 67% compared with the February peak, according to Nonfungible.
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Earlier, the CEO of Psyops Capital called the NFT market correction a “quiet crash”. He said that due to low liquidity, sellers struggle to gauge buyer sentiment, so the price of their asset may end up far below the purchase price.
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Beeple, the artist who sold an NFT for $69.3 million, called the market a bubble and compared it with the dot-com boom of the early 2000s.
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Ethereum co-founder Vitalik Buterin saw the potential for non-fungible tokens to become a public good.
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