As the cryptocurrency market is blooming, the NFT market is declining. What is actually happening?

adminMarch 12, 2024

Today, cryptocurrency market traders and investors are putting on bright and smiling faces after the flagship cryptocurrency ‘Bitcoin’ hit another record high for the first time in the history of cryptocurrencies. Unfortunately, its sisters in the non-fungible token market are gray-faced as the NFT market is still experiencing negative growth. In this article we will evaluate in depth what is actually happening.

The NFT market fell 10% as Bitcoin hit an all-time high.

Despite the cryptocurrency market breaking record barriers, the non-fungible token market is in decline today, according to data from Cryptoslam.io, an on-chain cryptocurrency market data aggregator. In the last 24 hours, global NFT market sales volume was $45 million, down 10% from the previous day.

NFT sales

This morning, Bitcoin, the largest digital asset by market capitalization, surpassed $72,000, hitting an all-time high for the first time in cryptocurrency history. Ethereum, the second-largest digital asset by market capitalization, has also rebounded quickly over the past few weeks, breaking several past resistance levels. Ethereum has also recently surged past $4,000 and is aiming to break its all-time high.

bitcoin bitcoin

Ethereum, the same blockchain network that powers the crypto asset Ethereum, was the most traded blockchain network today. In the past 24 hours, Ethereum-based NFT collections have seen $19 million in transaction sales. However, Ethereum NFT sales decreased by 23% from the previous day.

Blockchain NFT sales

Source: Cryptoslam.io, selling NFTs through blockchain networks

Bitcoin, the blockchain network that supports the flagship cryptocurrency “Bitcoin”, is the second most sold blockchain network in the NFT market today. In the last 24 hours, Bitcoin-based NFT collections recorded $11 million in transaction sales. Bitcoin NFT sales decreased by 12.54% from the previous day.

The 5 best-selling NFT collections today

1. Bitcoin Ordinal NFT Collection

Bitcoin Ordinals, a collection of non-fungible tokens created on the Bitcoin blockchain network using Satoshi Nakamoto’s Ordinal theory, are the best-selling NFT collection today. In the last 24 hours, Bitcoin Ordinal Collection recorded $3.2 million in transaction volume. Bitcoin NFT sales volume was only 3.25% compared to the previous day.

2. Peplicator NFT Collection

Peplicator, digital artist Matt Furie’s NFT collection featuring a limited edition of 22065 NFTs hosted on the Ethereum blockchain network, is the second best-selling NFT collection today. In the last 24 hours, transactional sales of the Peplicator NFT collection hit $2.3 million, down 72% from the previous day.

Top Selling NFTs

Source: Cryptoslam.io, Top selling NFTs in the last 24 hours

3. Blast Box NFT Collection

Blast Box, a collection of non-fungible tokens created using ERC-424, a new fusion of the ERC-20 and ERC-721 token standards, is currently the third best-selling NFT collection. In the last 24 hours, the Blast Box NFT collection recorded $2.3 million in transaction sales.

4. CryptoPunks NFT Collection

CryptoPunks, a popular blue-chip NFT collection previously launched by digital asset company Larva Labs but now owned by Bored Ape Yacht Club creator Yuga Labs, is currently the fourth best-selling NFT collection. In the last 24 hours, the NFT collection, which features a fixed supply of 10,000 NFTs, has recorded $2.1 million in transaction sales.

5. Boring Monkey Yacht Club NFT Collection

The Bored Ape Yacht Club, the highest-selling NFT collection of all time from digital asset company Yuga Labs featuring a limited edition of 10,000 NFTs hosted on the Ethereum blockchain network, is currently the fifth best-selling NFT collection. In the past 24 hours, the Bored Ape NFT collection has recorded $2 million in transaction sales, topping the list of the top five best-selling NFTs of the day.

Why Are NFTs Going Down Despite Crypto Bull Run?

The non-fungible token market has recorded an unusual pattern this time after failing to shine despite the blooming of the counterpart cryptocurrency market. In most cases, industry experts have linked the NFT market and cryptocurrency relationship to the relationship between parents and children. This means that whatever drives the cryptocurrency market will also drive the NFT market.

During the market bull market in late 2021 and early 2022, the cryptocurrency market was booming and transaction sales in the NFT market exploded. This time, the cryptocurrency market seems to be booming on its own, showing that something is wrong.

It is worth noting that the general cryptocurrency market has experienced a prolonged market downturn, which has had a significant impact on the NFT market. In September 2023, on-chain analytics firm DappGambl released a report claiming that 95% of NFTs had their floor price values dropped to almost zero. The current reaction of the NFT market shows that investors have not yet healed from recent trauma and are not ready to take on investment risk.