# Cryptoverse: NFT bubble gets that shrinking feeling
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-05
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: NFT Bubble Shows Signs of Slowing Down
Meta Description: Get insights on the current state of the NFT market, from skyrocketing sales to recent declines. Discover how this digital asset landscape is evolving.
URL: https://financedigest.com/cryptoverse-nft-bubble-gets-that-shrinking-feelinghtml

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By Elizabeth Howcroft

(Reuters) – The NFT bubble isn’t popping, but it may have sprung a leak.

A year on from when a single non-fungible token sold for $69.3 million in crypto at Christie’s auction house, with the buyer paying to be recorded on blockchain as the owner of a digital file that anyone can see online for free, this weird and wild market is showing some signs of slowing down.

Sales on OpenSea, the largest NFT marketplace, had [reached nearly $5 billion](https://www.financedigest.com/td-other-banks-reach-1-35-billion-settlements-to-end-stanford-litigation.html "TD, other banks reach .35 billion settlements to end Stanford litigation") in January, a giant leap from the $8 million a year before, but declined to around $2.5 billion last month.

Around 635,000 people bought an NFT [last month](https://www.financedigest.com/monkeypox-emergency-could-last-months-with-window-closing-to-stop-spread-experts-say.html "Monkeypox emergency could last months, with window closing to stop spread, experts say"), for $427 on average, according to market tracker CryptoSlam, down from about 948,000 for $659 in January.

Companies nonethless continue to pile into the fashionable “metaverse”, where digital [assets like virtual](https://www.financedigest.com/more-businesses-investing-in-assets-like-virtual-credit-cards.html "More Businesses Investing In Assets Like Virtual Credit Cards") land and clothing for avatars can be bought for cryptocurrency as NFTs. JPMorgan and HSBC are among [businesses that have opened virtual venues in NFT-based worlds](https://www.financedigest.com/exclusive-qatarenergy-boss-says-world-cup-tension-will-not-impact-german-business.html "Exclusive-QatarEnergy boss says World Cup tension will not impact German business") this year, while YouTube and Instagram also have NFT plans.

Obviously the enthusiasm and interest that we had at some periods last year is not here anymore,” said Pablo Rodriguez-Fraile, a Miami-based [digital art](https://www.financedigest.com/the-cfo-and-mastering-the-art-of-digital-process-transformation.html "The CFO and mastering the art of Digital Process Transformation") collector. “I think we achieved something that wasn’t sustainable.”

He added that [sales had picked up again in recent weeks](https://www.financedigest.com/britains-tesco-increases-dominance-with-12-week-sales-rise-nielseniq.html "Britain’s Tesco increases dominance with 12-week sales rise – NielsenIQ"), though.

![](https://www.globalbankingandfinance.com/wp-content/uploads/2022/04/679.jpg)

Graphic: [NFT sales](https://www.financedigest.com/hermes-asks-court-to-block-metabirkin-nft-sales-after-jury-win.html "Hermes asks court to block ‘MetaBirkin’ NFT sales after jury win") on OpenSea- https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkdodgvx/Past%20the%20peak.png

Modesta Masoit, director of finance and analytics at NFT research firm DappRadar, said the market was not in overall decline but rather consolidating after its meteoric growth, adding that [investor caution following Russia’s](https://www.financedigest.com/gold-investors-face-bind-over-bars-from-tarnished-russia.html "Gold investors face bind over bars from tarnished Russia") invasion of Ukraine in late February may have depressed sales.

Everybody was [expecting that there was going to be a consolidation period,”](https://www.financedigest.com/cobalt-sulfate-market-is-expected-to-accelerate-at-a-cagr-of-8-2-over-the-forecast-period-of-2021-2031.html "Cobalt Sulfate Market is expected to accelerate at a CAGR of 8.2% over the forecast period of 2021-2031") she added. “It’s not going away, it’s just consolidating.”

Overall NFT sales have totalled about $11.8 billion so far in 2022, according to DappRadar, excluding $19.3 billion worth of sales from a platform suspected to be dominated by irregular trades, where a small [number of accounts trade items back and forth for inflated](https://www.financedigest.com/uks-december-shopper-numbers-defy-inflation-and-rail-strikes-hit.html "UK’s December shopper numbers defy inflation and rail strikes hit") prices.

![](https://www.globalbankingandfinance.com/wp-content/uploads/2022/04/680.jpg)

Graphic: Daily NFT volumes- https://fingfx.thomsonreuters.com/gfx/mkt/xmvjoqeqwpr/Daily%20volumes%20drop.png

BULL TO BEAR TO APE

NFTs can be exotic and dangerous beasts.

[Prices can drop](https://www.financedigest.com/netflix-cuts-prices-in-some-countries-to-boost-subscriptions-shares-drop.html "Netflix cuts prices in some countries to boost subscriptions, shares drop") dramatically after an initial surge, in a highly volatile market where the value of an asset depends on its social status.

Nima Sagharchi, head of digital assets at [auction house](https://www.financedigest.com/top-auction-houses-cancel-russian-art-sales-in-london.html "Top auction houses cancel Russian art sales in London") Bonhams, said that in contrast to the traditional art world, the NFT market can see-saw between bull and bear cycles within as little as a week.

An NFT representing a piece of computer-generated abstract images from a [collection called Art](https://www.financedigest.com/ngunu-tiny-on-how-industrialist-henry-clay-frick-left-one-of-the-finest-art-collections-in-the-world.html "N’Gunu Tiny on How industrialist Henry Clay Frick left one of the finest art collections in the world") Blocks would sell for around $15,000 on average at a peak in September 2021, but fetched just under $4,200 last month, according to CryptoSlam.

Meanwhile, Bored Ape Yacht Club NFTs – a [set of 10,000 variations on a cartoon primate – still sell for around $300,000 on average](https://www.financedigest.com/average-annual-uk-food-bill-set-to-rise-454-pounds-as-inflation-soars.html "Average annual UK food bill set to rise 454 pounds as inflation soars").

![](https://www.globalbankingandfinance.com/wp-content/uploads/2022/04/691.jpg)

Graphic: Bored Ape prices- https://fingfx.thomsonreuters.com/gfx/mkt/myvmnqxqlpr/Six%20figure%20profile%20pictures.png

[Buying a Bored Ape – as celebrities including Madonna and Paris Hilton have done – can be considered](https://www.financedigest.com/4-things-to-consider-before-buying-your-dream-car.html "4 Things To Consider Before Buying Your Dream Car") akin to joining a cross between a members’ club and an investment scheme. Buyers often advertise their membership by setting their NFT as their profile picture on [social media](https://www.financedigest.com/saudi-snitching-app-turns-citizens-into-social-media-police.html "Saudi snitching app turns citizens into social media police").

A cryptocurrency called ApeCoin was [launched last](https://www.financedigest.com/mercedes-benz-launches-e-class-its-last-new-combustion-engine-model.html "Mercedes-Benz launches E-Class, its last new combustion engine model") month, given initially to holders of Bored Ape NFTs as well as the project’s founders. Its [market cap is already $3.4 billion](https://www.financedigest.com/b2b-telecommunication-market-to-more-than-us-27-billion.html "B2B Telecommunication Market to more than US$ 27 billion"), according to Coinbase data.

Raoul Pal, a former Goldman Sachs executive, wrote in a [blog post](https://www.financedigest.com/how-to-create-backlinks-for-your-blog-posts.html "How To Create Backlinks For Your Blog Posts") that expectations for this token encouraged him to spend around $400,000 worth of the cryptocurrency ether on a Bored Ape NFT.

“Social tokens are the BIG thing,” he wrote.

![](https://www.globalbankingandfinance.com/wp-content/uploads/2022/04/691-1.jpg)

Graphic: NFT indexes- https://fingfx.thomsonreuters.com/gfx/mkt/gkplgqaoevb/NFT%20indexes.png

(Reporting by [Elizabeth Howcroft in London; Editing by Pravin Char)](https://www.financedigest.com/34315plane-carrying-coffin-of-queen-elizabeth-lands-in-london.html "Plane carrying coffin of Queen Elizabeth lands in London")


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