NFT hype evidently dead as daily sales in June 2022 dip to one-year lows

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Unfoldable tokens (NFT) occupied the main stage in the year 2021 as artists, influencers, A-list celebrities and the sports industry finally found a fan engagement tool that enabled the general public to benefit from its success. However, the craze around NFT has failed to maintain its position, as sales have fallen to a one-year low amid the 2022 bearish market.

The NFT boom, which began in early 2021, maintained its glory until May 2022 – backed by a healthy and bullish crypto ecosystem and a positive investment sentiment. However, the struggle of Bitcoin (BTC) to keep its ever-high prices has had an adverse impact across the crypto ecosystem.

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Number of daily NFT sales between June 2021 – June 2022. Source: NonFungible

The NFT ecosystem recorded its worst performance of the year in June 2022, as the total number of daily sales fell to around 19,000 with an estimated value of $ 13.8 million – a number that was recorded back in June 2021.

Last year, however, daily sales of NFT of a similar amount were considered impressive, as the nascent ecosystem has seen major implementations across a variety of use cases.

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NFT market capitalization and trading volume. Source: NFTGo

As evidenced data from nonfungible.com, the NFT ecosystem witnessed its highest daily sales figure of 224,768 NFTs on September 24, 2021, worth $ 78.3 million. However, the largest sale in dollar value occurred on May 1, 2022, when 118,577 NFTs were sold in a day for $ 780.4 million.

Some of the key factors negatively affecting the hype surrounding NFTs are falling Ether prices (ETH), lack of secondary market demand and unrealistic gas quotas. As a result, over the last three months, NFT’s market capitalization has suffered a drop of almost 40% losing more than 66% of its trading volume, as shown by data of NFTGo.

Related: NFTs will appear on Facebook, cross-post with Instagram while Meta Web3 expansion continues

In the midst of the bear market, crypto entrepreneurs, including Changpeng “CZ” Zhao, are helping governments investigate NFT use cases in ID-ing citizens. Also Facebook of the social media giant Meta recently announced plans to support NFTs for creators.

A meta-representative revealed that the spread of NFTs on Facebook would be gradual, starting with select creators in the United States.