Ethereum NFT collections lost nearly 60% of their market cap in 2022: Report

A survey of 81 nonfungible token (NFT) collections connected the Ethereum blockchain showed a crisp wide nonaccomplishment successful marketplace capitalization successful 2022, according to a study from DappRadar released Feb. 9. Losses were not adjacent distributed, however.

The Ethereum NFT marketplace was worth $9.3 cardinal astatine the opening of 2022, according to DappRadar’s valuation, and that fig dropped to $3.7 cardinal by twelvemonth extremity — a nonaccomplishment of 59.6%. The worth of Ether (ETH) impacted each values:

“It is besides important to see that ETH mislaid 60% of its worth past year, which had a beardown power connected the worth of the NFTs.”

The NFT marketplace peaked successful February 2022 astatine $19.1 billion, outperforming Bitcoin (BTC) and Ether until the Terra/Luna illness successful May. By the pursuing month, NFTs had mislaid 88% of their value. The marketplace deed its debased for the twelvemonth astatine $2.2 billion, astatine the extremity of November, the period of the FTX collapse. Thus the marketplace finished the twelvemonth up 68% from that low. The study noted:

“This retraction of the NFT marketplace was not a reflection of NFT’s utility, but alternatively a effect of atrocious actors and marketplace manipulations.”

Yuga Labs accounted for two-thirds of the marketplace successful 2022, with its CryptoPunks and Bored Ape Yacht Club collections holding 46.7% of the marketplace by themselves. The Otherdeeds postulation was Yuga Labs’ nonaccomplishment leader, falling 86.15%.

Related: Should Bored Ape buyers beryllium legally entitled to refunds?

The Azuki, Pudgy Penguins and Degen Toonz collections were the lone ones “launched successful 2021 oregon aboriginal 2022 to acquisition important marketplace headdress growth,” rising 113.89%, 260% and 204%, respectively.

NFT collections launched aft the Terra/Luna illness fared better. The study cites Potatoz (+134.68%), Renga (+211.63%), DigiDaigaku (+209.88%) and God Hates NFTees (+1,653.28%) arsenic examples.

The study besides traced the declining stock of collectibles successful the NFT marketplace share. Collectibles started 2022 with implicit 90% of the market, but held good beneath 75% of it successful January 2023. Trading measurement for NFTs successful January 2023 amounted to $870 million.

— DappRadar (@DappRadar) February 5, 2023