A survey was conducted by DappRadar on 81 NFT collections from the Ethereum (ETH) blockchain. It is very regrettable to see an overall loss in terms of market capitalization for the year 2022. Find out how the latter was distributed.
The different distributions of losses from Ethereum NFT collections in 2022
The Ethereum NFT market had a value of $9.3 billion at the start of 2022. This figure is given according to a report by DappRadar. However, this will fall to 3.7 billion dollars at the end of the year. This makes a loss of 59.6% in terms of market capitalization. It is important to remember that the price of this cryptocurrency has impacted its valuations.
Also, note that the NTF market peaked at $19.1 billion in February 2022. This was well above cryptos such as Bitcoin (BTC) and Ether (ETH). This will be observed until the collapse of Terra last May. The following month, NFTs lose 88% of their value. As a result, the market hits its lowest level of the year with a figure of 2.2 billion dollars at the end of November. This is also the month of the FTX collapse.
The reasons for this loss
The shrinking market for Ethereum NFT collections has nothing to do with reflecting the usefulness of NFT. Indeed, it is rather the fault of market manipulations and bad actors. Note that Yuga Labs represents two-thirds of the market in 2022 with its CryptoPunks and Bored Ape Yacht Club collections. The latter alone have nearly 46.7% of the market.
Elsewhere, the Otherdeed collection was Yuga Labs’ loss leader with a drop of 86.15%. It should also be noted that the Azuki, Pudgy Penguins, and Degen collections were the only ones to experience notable growth in market capitalization. These were launched in 2021 or early 2022.
The observation made following this report is that all the NFT collections that appeared after the collapse of Terra behaved better. Everything suggests that the market capitalization of Ethereum NFT collections and NFTs in general will do better this year.
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