The cryptocurrencies led by Bitcoin at the beginning of this year recorded a sharp decline, which pushed them to lose about half their value, with the destabilization of confidence in this market and the increasing pressures exerted by official financial institutions, which prompted many investors in digital assets to move towards the market for non-fungible or what Known as NFT’s.
It seems that the market for non-fungible assets has been affected in one way or another by the downward curve taken by cryptocurrencies, as the “The Bored Ape” Yacht Club, the most famous group of NFT’s, recorded a decline in the market value of its assets, as the price of its cheapest unit fell to 88 Ethereum on the day. Friday, May 27, while its price was 138 Ethereum on April 27.
Most of the non-fungible assets are denominated in the Ethereum cryptocurrency, and the unit price is $1816 (the level on Sunday, May 29, 2022).
Part of this decline can be explained by the decline in cryptocurrencies, as Ethereum lost about 38% of its value during the past month, while Bitcoin lost 25% of its value during the same period.
OpenSea, the largest non-fungible asset trading platform, is also showing a 45% drop in trading volume over the last 30 days (April 27-May 27).
The volume of transactions decreased to about 2.53 billion dollars, and the number of traders decreased by 13% to 416 thousand and 419 people, according to data from the specialized DappRadar website.
Specialists believe that the crisis of confidence in the digital currency market has cast a shadow over the non-fungible asset market, noting that the latter has previously gone through similar circumstances, and it certainly will not be the last time, but the NFT has demonstrated more than once its ability to innovate.
And on Monday, May 23, the American electronics giant Gamestop announced the launch of a wallet for cryptocurrency and non-fungible assets, which will work on the Ethereum blockchain, and the platform is expected to launch an application on smartphones.