Sales of NFT totaled 193.08 million USD this week, down 5.44% from previous week, according to data from 19 separate blockchains.
Data from Cryptoslam.io, according to Bitcoin.com, indicates that sales have usually decreased over the last 30 days, totaling USD 912.54 million, or 29% less than the previous month’s sales.
In terms of NFT sales this week, the top five blockchains are Ethereum ($107 million), Solana ($26 million), Polygon ($6 million), Immutable X ($5.3 million), and Cardano ($3.16 million).
Sales of Solana NFT climbed this week by 37.16%, while sales of Cardano NFT increased this week by 44.27%. Yet, compared to sales last week, sales of Ethereum, Polygon, and Immutable X NFT all experienced decreases. The top gainers in terms of NFT blockchain sales include Arbitrum, which climbed by 64.49%, and the Avalanche blockchain, which had a 293% growth.
What Causes the NFT Sales Decrease?
Like any other asset, NFT prices can be volatile and subject to fluctuations. Here are some of the reasons why NFT prices can drop.
1. Saturated market
Market saturation is one of the main causes of a reduction in NFT prices. With new artists and innovators entering the market every day, the NFT market has experienced tremendous expansion over the past year. As a result, a large number of new NFTs have been posted for sale, and consumers may feel overloaded by the sheer number of alternatives. Due to this, the price of some NFTs may fall as demand declines.
2. Lack of demand
Lack of demand is another factor that can cause NFT prices to decline. While some NFTs might be in high demand, others might not be as popular. If certain NFTs don’t connect with buyers emotionally or personally, they can lose interest in them. Also, prices may fall if there are too many comparable NFTs for sale since consumers may be less motivated to buy a particular one.
3. Speculative bubble
Similar to how cryptocurrencies in 2017 experienced a speculative bubble, the NFT market has been compared to that. In a speculative bubble, speculation and hype rather than underlying value drive up asset values. Price drops after a bubble burst might be significant.
The euphoria surrounding NFTs could result in a similar bubble and eventual price decline, despite the fact that they are intrinsically valuable as distinctive digital assets.
4. Market sentiment
The price of NFTs can be significantly influenced by market sentiment. Prices may increase if both buyers and sellers have a positive outlook on the NFT market’s future. In contrast, prices may decrease if there is bad news or unfavorable market sentiment. This is comparable to how investor sentiment can impact conventional stock markets.
5. Technical problems
NFT pricing can decline due to technical difficulties as well. For instance, if an NFT is linked to a smart contract that has a flaw or weakness, it may be vulnerable to manipulation or hacking. This might cause investors to lose faith in the asset, which would then cause the price to fall. Similarly, if an NFT is linked to a platform that encounters issues or goes offline, buyers could be reluctant to purchase the asset, which could result in a decline in price.
In summary, a number of factors, including as market saturation, a lack of demand, speculative bubbles, technical problems, and market mood, can cause NFT values to decline. To make educated decisions regarding investing in NFTs, buyers and sellers should undertake their own research and analysis, just like they would with any other asset.