💥💥💥 #NFT Prices Tumble As Crypto Investors Place Big Bets On #bitcoin And Ethereum #ETFs
The non-fungible token (NFT) market is experiencing a decline in popularity amidst optimism around Bitcoin (BTC) and Ethereum (ETH) price spikes. Google searches for NFTs have hit their lowest levels since 2021, as reported by Bloomberg. NFT sales dropped over 6% to $8.5 billion in the first five months of this year, compared to the same period last year. This is a significant decline from the peak in January 2022, when sales reached $17.2 billion in one month.
The sentiment around NFTs worsened last month when the US SEC took steps toward approving ETFs directly investing in Ethereum, causing investors to reallocate funds from NFTs to ETH. Nicolas Lallement of NFT Price Floor noted this capital rotation is common in crypto markets, contributing to price drops for NFTs.
Popular NFT collections like CryptoPunks, Bored Ape Yacht Club (BAYC), and Chromie Squiggle have seen significant price declines, with some dropping around 40% to 50% year-to-date. Despite some collections like XCOPY’s posting positive returns recently, the overall trend indicates a market correction.
Daniel Maegaard, an NFT collector, confirmed the ongoing decline or stagnation of most NFT collections since their 2021 peak. While Magic Eden has shown some resilience and gained market share, its trading activity has decreased since April.
Overall, the NFT market is reflecting a decline in both popularity and prices, with continued correction expected. ETH was trading at $3,480, following a sharp decline along with Bitcoin.
Source - newsbtc.com
