The non-fungible token (NFT) market experienced a significant cooling-off period despite Ethereum (ETH), the primary blockchain for NFTs, surging 19% to reach $4,100.
Data reveals a sharp 11% decline in overall NFT sales volume to $134.9 million, signaling a decoupling from the appreciation of its underlying asset.
Market participation saw an even steeper collapse, with the number of active buyers and sellers both plummeting by approximately 90% compared to prior periods. This sharp drop indicates significantly reduced user engagement despite the leading cryptocurrency’s bullish move.
A notable exception to the downturn was the high-value segment, highlighted by the record $2.5 million sale of CryptoPunks #1021. However, this isolated high point failed to buoy the broader market, as the total number of NFT transactions saw only a marginal 1.60% increase.
Ethereum’s dominance within the NFT sales space specifically decreased significantly, falling 23.43%. Positive news emerged in the form of a substantial 61.64% reduction in detectable wash trading, dropping to $5.5 million.
Performance across alternative blockchains varied. Polygon emerged as a strong performer, recording a 56.90% surge in sales volume totaling $17.8 million. Bitcoin and BNB Chain saw differing results depending on the specific NFT collections tracked on each chain.