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The NFT market continues to lose pieces: 100 million dollars less in November

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The NFT market crash continues unabated. Just a year ago digital collectibles were a global phenomenon and some NFTs were selling for six figures. Today, the NFT market is still alive, but volumes are at historic lows and many are starting to wonder how much longer this agony can last.

 

Obviously, the misfortunes of NFTs depend at least in part on the increase in rates and on the anti-inflationary policies of central banks, which, as we have already seen, have penalized practically all speculative assets (and reduced the stock market value of many mega-companies techs).

NFTs, which represent – ​​if possible – the perfect definition of hyper-speculative assets even more than cryptocurrencies, have been penalized more than any other product. The top five NFT marketplaces cumulatively reported sales of $394.02 million, according to a lengthy and detailed analysis by Balthazar. It is the lowest figure of the year. It can celebrate, at least in part, Magic Eden , the most important marketplace dedicated to NFTs issued on Solana , a blockchain competitor of Ethereum which still maintains a very lively community today.

Balthazar also signals the rise of X2Y2 , a marketplace dedicated to Ethereum NFTs, which is rapidly stealing ground from OpenSea , the largest and most important marketplace in the industry.

 

Compared to October, the combined volume of the five marketplaces again lost more than $100 million. This is a 20% drop. The decline in volume doesn’t look set to stop any time soon.

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Balthazar CEO and co-founder John Stefanidis mentions several causes that may explain the plummeting popularity of NFTs. In his analysis he obviously mentions the collapse of Terra Luna, Three Arrows Capital and FTX. Three earthquakes of unprecedented proportions that undermined investor confidence in crypto assets.

 

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