It is no secret that an NFT blue-chip collection like BAYC has significantly decreased in value. This, in turn, managed to panic a lot of NFT players in the market and paved the way for a negative environment. Of course, constructive criticism and discussion around NFT are important. But most tech wizards and crypto enthusiasts believe that the NFT craze is far from over.
Look Beyond BAYC NFT Collection
The fact of the matter is that the NFT collection extends beyond BAYC. As of now, there is a long list of NFT collections available in the market. After the significant value decline of the BAYC NFT collection, the market started to head on a downward trajectory.
Reasoning Behind Recent NFT Decline
But like the stock market, there are bound to be ups and downs in the NFT market as well. In fact, contrary to misguided perception, the NFT sector is ready to enter a new phase with increases in sales volume. As of May 2022, the sales volume around NFT is as high as $3.7 billion.
Although there was a decrease of 20% in sales volume, the report from DappRadar suggests that the volume of NFT sales will continue to increase in Q3 and Q4. While crypto assets are now part of the bear market, there is still a robust presence in the NFT sector.
Besides, you cannot take into account the collapse of a giant market like NFT just from a few tweets. Keen observations from tech experts indicate that the NFT market will become more stable by the end of Q4 2022. Just like in 2021, the sales volume of active participation around NFT is still high in 2022.
The NFT market may have slowed down a bit in Q1 of 2022, but now it looks like it’s ready to pick up the speed. As per DappRadar, the NFT shows a higher sales volume for active users.
Long-term Stability of NFT Market
The Chainalysis report highlights that the NFT sector has already started to stabilize and would pick up the upward trajectory in sales by the end of Q3 of 2022. Despite fluctuations since early 2022, the transactional volume of NFT is growing at a faster pace. As for the most recent ostensible NFT decline, the sales haven’t hit the flat line. The market has started to become more optimistic about NFT and there is more awareness and participation than ever.
Role of OpenSea NFT Marketplace
One of the main reasons the NFT market saw a decline in value has to do with a marketplace like OpenSea. The platform was down by 6.5% in April, which triggered a series of negative events around NFT. But the fact remains that the OpenSea, on average, generates a trading volume of over 900,000 ETH.