Report: More than 50% Change in Ethereum NFT Market Cap
DappRadar has released a report showing that the Ethereum NFT market cap has dropped 59.60% from $9.3 billion in 2022 to nearly $3.7 billion in early 2023. DappRadar’s work is based on market cap analysis of the 81 largest collections of NFTs running on the Ethereum network.
According to DappRadar, the collapse of Terra Luna in May 2022 was the main cause of 88% market cap loss of NFT projects running on Ethereum until June 2022. Thus, the decline in the market value of NFT projects was not due to the indifference of investors, but rather the manipulations of bad actors in the ecosystem. During the collapse of FTX, this is probably the main reason for the wider collapse of the crypto industry, as the market cap of the entire NFT ecosystem plummeted following the global crypto market.
Some projects launched in 2021 and early 2022 recorded “significant market value growth” of up to 260%, the report said. Among these projects were the Azuki, Pudgy Penguins and Degen Toonz collections, whose market capitalization increased by 113.89%, 260% and 204% respectively.
Among the new NFT projects launched after the collapse of Terra Luna are: Potatoz, whose market value increased by 134.68%, Renga increased by 211.63%, DigiDaigaku increased by 209.88% and God Hates NFT increased by 1.653.28% . It should be noted that although ETH, the native currency of the Ethereum network, suffered a 60% price drop last year due to the bear market, all of these projects managed to achieve dramatic growth.
According to DappRadar, Yuga Labs, the parent company of the Bored Ape Yacht Club project, has dominated the Ethereum network’s NFT market and established itself as a leading player in the NFT industry, despite other projects falling exponentially. While Yuga Labs’ collection accounts for 67% of the total value of the NFT market on Ethereum, Bored Ape Yacht Club’s market cap fell 64.92% at the end of 2022, from $2.6 billion to $934 million.
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