The drop in the crypto market in the second quarter appeared to have cast a shadow on Non-Fungible Tokens, or NFTs.
Data show that interest in digital collectibles, or NFT, decreased in the second quarter of this year when compared to the first and same period the previous year. NFT Trading Volume Declined By 64 Percent.
According to data from The Block Research, NFTs had a total trading volume of $12.22 billion in the second quarter of 2022. In the first quarter, the figure stood at $33.88 billion, translating to a decline of 63.93 percent.
This has been a difficult year for the general digital asset markets.
In comparison to other sectors, the NFT sector’s decline in the second quarter is the most concerning.
The cryptocurrencies and NFT markets have suffered some setbacks as a result of investor disinterest, market trends, and so on.
Both markets’ performances were influenced by macroeconomic trends and the fallout from the Terra debacle.
NFT trading volume decline
The second quarter had numerous highlights but some of the notable ones include; the top 20 cryptocurrencies on the basis of market capitalization saw their value decline by at least 30 percent. DeFi Total Value Locked (TVL) declined by 68.13 percent or $155.79 billion in Q2 of 2022, and decentralized exchange (DEX) trading volume decreased by 38.6% compared to the first quarter.
Unlike June, the month of April accounted for most of the trading volume seen in the quarter. April accounted for $7.8 billion or 59 percent of the trading volume for the quarter. A total trading volume of $46.1 billion was recorded during the first quarter of the year. Compared to the first quarter of 2021 which saw a trading volume of $953 million, NFTs have done well for the year and trading volume is over 4,700 percent. Compared to 2021’s second half which had a trading volume of $14.91 billion, trading volume for the first half of 2022 is up more than 200 percent.
Blockchain games have proven to be quite resilient to turbulence, but game-based NFTs cannot.
Trading volume is down 82 percent overall, with most of the chain experiencing a pullback, with Ronin suffering the most (84 percent) and Ethereum suffering the most (88 percent). The Ronin series has suffered as a result of a hack that netted more than $600 million.
