According to a newly released report, the market capitalization of Ethereum-based Non-Fungible Tokens (NFTs) showed a tremendous decline of 60% in 2022. This significant decrease in market value was attributed to a number of factors, including an overall slowdown in NFT trading. Adding a decrease in the number of new projects being developed on the Ethereum blockchain.
Additionally, the report notes that many of the existing NFTs experienced an overvalued and thus suffered significant losses if their true value is realized.
A new report by DappRadar has highlighted a concerning trend in the Ethereum-based Non-Fungible Token (NFT) market. Its total capitalization has dropped drastically from a high of $9.3 billion at the start of 2022 to $3.7 billion by the end of the year.
Of all the collections, Yuga Labs’ Otherdeeds collection saw the sharpest decline. Adding to that its market cap dropped a staggering 86% to only $356 million. This dramatic devaluation serves as an unwelcome setback for Yuga Labs’ bold vision of creating an immersive metaverse experience within their NFT ecosystem
Major collections of Yuga Labs suffer significant losses
.A recent report has revealed that the collections of Yuga Labs make up a staggering 67% of the total market capitalization of Ethereum Non-Fungible Tokens (NFTs). Even more impressive is the fact that nearly half of this market cap can be attributed to two specific products: Bored Ape Yacht Club and CryptoPunks.
These two collections have become immensely popular among cryptocurrency enthusiasts, with both offering unique digital assets that are highly sought after. With such a large portion of the NFT market cap being held by these two collections, it’s clear that Yuga Labs has established itself as a major player in the NFT space.
As such, Ethereum-based NFTs face an uncertain future, with investors advised to exercise caution when considering making any new investments in this sector.
