NFT sales and floor price plummet as the demand for NFTs declines and gas prices soar

Market-wide correction this week led to a sharp fall in NFT sales. The decreased demand for digital collectibles caused a drop in the price of major projects.
The nonfungible token (NFT), has seen a surge in interest throughout 2021. August saw record-breaking trading volumes. One-of-a kind digital collectibles were sold regularly for over $1 million dollars. NFT sales volume by platform. This is a common phenomenon in the cryptocurrency ecosystem. Source Dune Analytics. According to Dune Analytics data, the total volume NFTs traded on top NFT marketplaces has experienced a significant decline over the past week. This was especially evident in the data for top 5 NFT projects that were traded on OpenSea. All have seen a significant drop in volume. Loot is an exception. However, the project is relatively new and was also part of a $70,000 airdrop last week for holders. Source: OpenSeaThe price floor for NFTs has also fallen. Data from Dune Analytics shows that at its peak, it was 1.02 Ether. However, it has since fallen to 0.37 Ether due to the wider market pullback as well as the temporary decline in NFTs. NFT floor price tracker. Source: Dune Analytics. It is important to note that this metric may be misleading as newer projects can be listed on the market and sell for lower prices. High-priced sales continue to occur for many top projects like CryptoPunks or EtherRocks. This indicates that there is still a high demand for premium projects. EtherRock 73 purchased for Ks790 Ether ($2,607,584.60)10 hrs 50 mins ago (Sep-07-2021 08:03:49 PM +UTC)Txn: https://t.co/wo403bWFPC #EtherRock #EtherRocks pic.twitter.com/01lhQOoye0– EtherRock Price (@etherrockprice) September 8, 2021

Related: Nifty news: Dolce & Gabbana’s historic NFTs. One example of this momentum is the ongoing auction for 101 Bored Ape (ETH) NFTs at Sotheby’s. This auction has already seen one rare collectible sell for a record 600 Ether ($2.25 million at the time). This indicates that premium projects are still in high demand and that NFT prices may recover as the wider crypto market recovers. Christie’s will host an Art Blocks Curated auction on October 1. We are proud to announce that Art Blocks Curated: Sets 1 through 3 will be sold as part of the Post-War to Present New York auction on October 1. This lot will be auctioned live at ETH, a first for any major auction house. #NFTs #digitalart #onlineauction @artblocks_io pic.twitter.com/jDNK6VviYi– Christie’s (@ChristiesInc) September 7, 2021

It’s possible that mainstream adoption will continue with well-respected and established institutions backing the NFT sector. The current pullback is just part of the normal crypto market cycles. These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your own research before making any investment or trading decision.

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