NFT Floor Prices Drop As the Price of Gas Rises
According to Dune Analytics data, the overall amount of NFTs traded on the main NFT marketplaces has dropped significantly since Sept. 2, and the sector has been particularly hard affected by this week’s Bitcoin-led market downturn.
This drop-in volume is evident in the statistics for the top five NFT projects traded on OpenSea, which have all witnessed a considerable decrease.
The one exception is Loot, although the project is in its early stages and just participated in a $70,000 airdrop for holders.
The floor price for NFTs has also dropped significantly, according to Dune Analytics, which indicates that at their peak, the price floor was 1.02 Ether but has now dropped to 0.37 Ether due to the wider market slump and temporary fall in interest in NFTs.
It is important to note that this measure might be somewhat deceptive because the price floor can be influenced by newer projects entering the market and selling at lower rates.
Robust-priced sales are still occurring for many of the top projects, such as CryptoPunks and EtherRocks, indicating that demand for premium projects remains high.
The Industry Is Still In Its Early Stages
It is also crucial to note that the NFT industry as a whole is still in its infancy and is just now making inroads into mainstream discourse.
A notable illustration of this momentum can be seen in the ongoing auction for 101 Bored Ape NFTs at Sotheby’s, where one of the rare collectibles has already sold for a record 600 Ether (ETH) worth $2.25 million at the time of sale.
This implies that demand for premium projects remains robust and that NFT prices may rebound once the cryptocurrency market as a whole recovers.
Christie’s is also contributing to the NFT sector’s continuing growth by holding a forthcoming Art Blocks Curated auction on October 1.
With well-known and established institutions backing the embryonic NFT industry, the speed of mainstream acceptance is expected to accelerate further, and the present retreat is merely part of the normal crypto market cycles.