Updated on January 16, 2023 8:13 AM
Non-fungible tokens, or NFTs, were all the rage in 2021, surging to spectacular heights alongside cryptocurrency values. However, cryptocurrency values plummeted in 2022, thereby killing the NFT sector. Since then, prices have changed substantially, and trading volumes have been far lower than in 2021.
Overall, NFT transaction volume fell considerably in 2022. According to Bitay data, between January 2022 and September 2022, NFT trade volume dropped by 97%, from $17 billion to $466 million.
On May 1, 2022, 118,577 NFTs were sold for a total value of $780.4 million, making it the single-highest value trading day in NFT history. However, while the crypto market has remained in a "crypto winter," NFT pricing and transactions have showed no significant signs of recovery.
According to Kameshwaran Elangovan, co-founder and chief operating officer at GuardianLink, several businesses have entered the Metaverse realm, floating their own digital collectables and thereby paving the path for totally digital interactions for their audience in the Web 3.0 environment.
Recognising the potential of Web 3.0, the relevance of decentralised customer interaction, and the need to give exclusive digital experience to customers in the metaverse, brands like Nike, Flipkart, Pepsi, Bulgari, and even Louis Vuitton started to create unique digital experiences for their customers facilitated by NFTs,” Elangovan says.
Even as the NFT market began to dry up in 2022, there were still a few of remarkable high-dollar deals. In reality, considering how the crypto market exploded beneath it, the NFT market fared very well, at least in terms of high-dollar purchases.
The following are the top-dollar NFT sales in 2022:
COPY’s All-Time High in the City, January 2022: 1,630 ETH ($6.2 million at time of sale)
CryptoPunk #5577, February 2022: 2,501 ETH ($7.7 million at time of sale)
CryptoPunk #5588, February 2022: 8,000 ETH ($23.7 million at time of sale)
Julian Assange and Pak’s Clock NFT, February 2022: 16,953 ETH ($52.7 million at time of sale)
CryptoPunk #5588 was the highest-priced CryptoPunk NFT ever sold.
There were no top-dollar NFT sales after February 2022, indicating that the NFT market began to shrink as the year progressed.
While there is no doubt that the NFT market took a significant damage in 2022, some highly bullish experts and industry insiders believe that 2023 will be considerably friendlier to the business.
This optimism is based on the fact that NFTs are an essential aspect of the digital economy, which appears destined to grow even if it does not become the "parallel universe" that some believe will be similarly vital to today's market.
This bullish forecast is based on the assumption that NFTs will continue to be accepted by the video game, artwork, music, and digital collectable industries. If life becomes increasingly virtual in the coming years, in the sense that consumers employ virtual assets in the metaverse, NFTs may have staying value. According to Verified Market Research, the market value of NFTs would increase to $231 billion by 2030.
However, prices are expected to reverse direction before the sector's excitement returns. Google revealed in November 2022 that searches for NFTs had decreased by 88% in less than a year, which is likely the strongest real-world evidence of how interest in the sector is dwindling.
According to CryptoSlam data, Ethereum's Bored Ape Yacht Club was the top-selling NFT project last year, with roughly $1.6 billion in trading volume. The great majority of such trade, however, occurred between January and May, as starting prices declined from a late April high of $429,000 worth of ETH to a recent low of under $60,000 in November.
In comparison to its early-year highs, the NFT market concluded 2022 with a whimper. However, overall trading volume increased slightly over November's total, while the number of NFTs sold in the last month of the year increased after a drop the previous month.
According to DappRadar, the NFT market generated approximately $684 million in organic trades in December, up from over $662 million in November. During the month, around 6.7 million NFTs were sold, up from approximately 4.8 million in November and 6.1 million in October.
The Solana blockchain's recent up-and-down cycle continues, with the price plummeting to over $70 million from $95 million in November. It had previously dropped to $67 million in October, following a torrid September that saw approximately $134 million in NFT sales due to the introduction of y00ts. Because of the FTX crash, the value of SOL decreased precipitously in November and December.
Overall, the Silks NFTs are an excellent investment for long-term high returns in 2022. Silks' NFTs are new, and they bridge the gap between the real world and the cryptocurrency business, making them extremely valuable.
The current price is US$0.002727. Market capitalization: $720,751,165 ECOMI is a popular NFT under US$10 for crypto investors looking to benefit from their crypto wallets. It is a technology-based startup focused on the developing digital collectables industry and digital asset security.
The most difficult aspect of intending to sell non-fungible tokens is persuading people that they are worth anything. The majority of NFTs have no intrinsic value.