NFT markets are bleeding badly in the wake of the FTX crash that has seen over $150 billion wiped off the market in a matter of days. FTX was one of the top crypto derivative protocols, but a series of events have put the platform into bankruptcy.
To raise liquidity, the platform has been scrambling to find investors. Binance was viewed as a lifesaver, but the exchange withdrew due to issues beyond their control. This has forced FTX to sell some of its crypto holdings, which has created a domino effect in the market, crashing the prices of tokens such as SOL and ETH.
Ethereum and Solana are the two top NFT chains, with the most volume recorded on these networks. According to data from Dune Analytics, NFT trading on both protocols has taken a huge hit. OpenSea’s trading volume on Solana has dropped by 80% over the past few days, from $70,000 to $14,000.
Also, Solana’s top NFT marketplace, Magic Eden, has seen its volume drop by almost half within the period.
OpeaSea’s daily trading volume of Ethereum has dropped by almost half, from 6,000 ETH to 3,900 ETH. In dollar terms, the volume fell from $7.1 million to $4.6 million. Additional data shows that buyers on OpenSea are buying collections at bid prices instead of sellers’ offer prices, which suggests users are trying to liquidate their holdings as fast as possible.
As a result, OpenSea is witnessing an all-time ratio of wrapped ETH to ETH volume.
What Does The FTX Crash Mean For NFT Markets?
Despite the ongoing crises, the NFT market will be fine. At least, that’s what some community members, such as Punk6529, believe.
According to him, the NFT community can handle a down market better than a fungible coin community. “Unlike the fungible world, there are all types of things going on in the NFT world that are beyond the price of the tokens.”