Non-fungible tokens have been swept up in the recent crypto crash, with both NFT collections and NFT coins plunging in value. According to data presented by CryptoPresales.com, the combined market cap of the world`s top five NFT coins has plunged by $9.6bn year-to-date.
Tezos`s Market Cap Dipped 64%, Decentraland Follows with a Massive 77% Plunge
Ever since the crypto market crash, consumer confidence in the NFT market has been fading, according to blockchain analytics platform Chainalysis. The number of people buying and selling NFTs has fallen significantly since February, causing non-fungible tokens to witness a double-digit price drop.
The world`s largest NFT coin, Flow, has seen its market cap plunge by 40% since the beginning of the year, according to CoinMarketCap data. On Monday, the combined value of all Flow tokens stood at $1.66bn, down from $2.81bn in January.
ApeCoin, the second largest NFT coin by market cap, witnessed a 31% drop in the nine months, with its market cap falling from $2.32bn to $1.6bn. Still, that is nothing compared to the price drop of Tezos and Decentraland, the fourth and fifth largest coins in the NFT space.
Last year, Tezos tokens were soaring after French gaming giant Ubisoft chose the smart contract platform for a major experiment with NFTs. However, the NFT coin has seen its price tumble this year. Statistics show that Tezos`s market cap dropped to $1.3bn this week, or 67% down from January figures.
Decentraland witnessed an even more brutal plunge. In January, the combined value of all MANA tokens stood at over $6bn. This figure dipped by 78% to $1.29bn on Monday.
Interest in NFTs at Lowest Point Ever
One of the key reasons why NFT coins have seen their price tumble this year is a falling interest in investing in them.
According to Google Trends data, after peaking at 100 in January, interest in buying NFTs fell to its deepest point ever at 6 in the second week of September.
The number of investors buying and selling NFTs has also dropped. According to Chainalysis data, 491,000 unique addresses bought or sold an NFT in Q2 2022, down from 627,000 in Q4 2021.