NFT Market Faces Sharp Decline: Market Capitalization Drops 46% in 30 Days

The non-fungible token (NFT) market has experienced a significant decrease in value over the last month, despite a rise in trading activity during October.

Key Takeaways

The global NFT market cap fell from approximately $6.6 billion on October 5 to $3.5 billion, representing a 46% decline in just 30 days.
Although sales volume rose by 13% in October, this was not enough to sustain market values.
Players like BNB Chain and Polygon saw severe price drops of 82% and 86%, whereas Bitcoin and Base NFTs remained more resilient.
Major collections like CryptoPunks and Moonbirds faced substantial trading volume declines.
Industry leaders are diversifying their offerings beyond NFTs as market conditions shift.

NFT Market Faces Sharp Decline

Market Cap Decline Amid Increased Trading Activity

According to CoinGecko, the global market capitalization of NFTs fell drastically from about $6.6 billion on October 5 to $3.5 billion by the end of the month, marking a decline of 45%. This drop occurred despite a boost in trading activity, which saw sales in October reach roughly $631 million—up 13% from September's $556 million total. Notably, Bitcoin and Base NFTs showed resilience, with gains of 9% and 24%, respectively, while the BNB Chain and Polygon saw declines of 82% and 86%.

30-day sales volume by blockchain. Source: CryptoSlam

Volatility in Blue-Chip NFT Collections

NFT Price Floor data reveals that even the most established collections have been impacted by the current market correction. For instance, CryptoPunks recorded a 40% decrease in trading volume over the last 30 days, with its floor price dropping from approximately $214,000 on October 5 to $117,000 on November 5. Similarly, Moonbirds experienced a 63% decline in trading volume, causing floor prices to plummet from $14,700 to $6,500.

While some collections, such as the Bored Ape Yacht Club (BAYC) and Pudgy Penguins, observed increases in trading volume—30% and 83%, respectively—their floor prices suffered significant losses. BAYC's prices dropped from $36,700 to $19,500, while Pudgy Penguins fell from $43,000 to $18,340. This discrepancy suggests that market liquidity remains speculative and highly influenced by the overall sentiment in the cryptocurrency space.

Related: NFT markets rebound after $1.2B wipeout in Friday’s crypto crash

Industry Leaders Look Beyond NFTs

Despite the downturn in the NFT market, prominent players in the industry are adjusting their strategies. OpenSea, a leading digital collectible marketplace, announced plans to evolve into a universal on-chain trading hub in October, having maintained over 522,000 traders in the past 30 days. The company clarified that this development does not signify a shift away from NFTs.

Meanwhile, Animoca Brands, another key player in the NFT sector, revealed its intentions to list on Nasdaq, highlighting the growing recognition of Web3 gaming and metaverse companies in traditional capital markets, even as secondary NFT markets experience contraction.

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