Winter has never been a comfortable time for living and this crypto winter is no exception. We’ve been in the cold for around a year so far, and we’re essentially in the middle of this crypto winter. But no one can tell you exactly when it will end.
What can be said for sure is that the bottom has not been reached. The crypto market will continue its steady decline for the time being. NFTs, DeFi, Game-Fi, and Layer 2 are all niches that will fall further without exception. Still, numbers don’t indicate the real situation, but do indicate developments and joint efforts. It’s more important to take a deep look at projects’ progress instead of token price. But first, let’s analyze the current NFT market sentiment.
A fair NFT market overview
In 2022 alone, non-fungible token (NFT) trading volumes fell by 97%! From January to September, they descended from $17 billion to $466 million. This is stated in a study from Dune Analytics. According to Bloomberg, the results of this market research are based on the monitoring of the largest NFT markets including Opensea, NFTX, LARVALABS, LOOKSRARE, SUPERRARE, RARIBLE, and FOUNDATION.
The sharpest decline took place in Q3 2022. According to a NonFungible.com report, the NFT market suffered a shocking drop of 77% in trading volume. $1.6 billion were traded in Q3 against $7.3 billion in Q2. The picture is critical but not hopeless as sales volumes fell by just 5%, the number of sellers decreased by 11%, and active wallets by 17%.
There are also two positive indicators: active Smart Contracts and average ownership duration. These increases point to the appearance of new NFT projects and important changes in users’ minds. They are no longer flipping tokens but are ready for HODL.
The NonFungible.com report also says:
“During this third quarter, one of the biggest changes was the reconstitution of the market. For example, Yuga Labs’ collections (Bored Apes Yacht Club, CryptoPunks, Otherside, and Meebits) accounted for just over 30% in Q2. For Q3, they represented 17% of USD volume traded.”
These changes are due to decentralization. Old projects lost their power monopoly as Smart Money and the interest of users flowed into new NFT market players.
Another important milestone is that well-established brands like Tiffany, Starbucks, Microsoft, and MTV, are interested in NFTs now. This NFT expansion continues in multiple directions. Recently, the Japan-based entertainment and video game company Konami has posted new job openings to expand its own NFTs, Web3, and metaverse offerings. Mass adoption is edging closer, but it’s only achievable with joint efforts.
When will the winter end?
Crypto winter trends indicate it will continue for another year. These indicators include:
- The US dollar got stronger when the DXY index broke through the 110 mark and gained a solid foothold above. The next major historical level is 120 and it seems like the US national currency will get there pretty soon. While USD is getting stronger, all markets are trading against it, and crypto is no exception.
- The global financial crisis is going nowhere soon. The difficult geopolitical situation and the post-COVID effects are hitting the global economy. According to forecasts, the chance of a recession in 2023 is 100% and everyone is looking to cut spending ahead of the storm.
- Overly long bullish cycle. The bulls single-handedly ruled crypto for more than a year and a half, and market capitalization has grown by more than 1000%. Such massive growth should be accompanied by a corresponding fall as it's impossible to keep abnormal interest in the market forever.
Should we expect the next bullish cycle this year? Definitely not, only a substantial bounce. But it can fairly begin in 2023. So, what’s the best plan today? Get yourself prepared!
Only the worthy will stand?
Despite the crypto winter, NFT technology is still the most ambitious in 2022. Many companies and tech giants are constantly on the lookout for NFT startups and bright creators. Today, there are many more success factors for NFT projects. This can be attributed to a project’s own high-quality website, well-thought-out roadmap, mass promotion, and a strong idea, and ending with dedication and daily painstaking work on brand building.
The market continues to generate newsbreaks. Oscar award-winning actor Sir Anthony Hopkins sold out his debut NFT collection called “The Eternal Collection” in under 10 minutes. The collection features 1,000 original cinematic art pieces inspired by different performances from the actor's long career.
Canadian NFT gaming company Horizon Blockchain Games has raised $40 million in a Series A funding round led by Brevan Howard Digital and Morgan Creek Digital. Traditional video game firms like Ubisoft Entertainment SA and Take-Two Interactive Software also took part in the round. These are just a few examples of recent successful NFT stories.
The market continues to develop despite the crypto winter. Of course, many projects have frozen development and marketing activities, but the main players continue to work. Recently, the move-to-earn blockchain game STEPN dismissed rumors about laying off around 100 staff, instead confirming its intent to hire employees despite bearish market conditions. Another who continues to resist the cold winds is NiftyPlanet; a Japanese-based NFT marketplace that has made significant progress!
What’s new about NiftyPlanet?
The NiftyPlanet team believes that crypto winter can only be survived by joining forces, so they continue to deliver hot updates for their community.
- The developers managed to unite 3 blockchains including Ethereum, Matic and BSC. Now platform users don't need to switch between networks, instead happening automatically when buying NFTs.
- A new blog, where you can find useful articles and announcements.
- A function has been added to the My Wallet subpage that displays the user's current balance and NFPL tokens. NFPL itself can be purchased on PancakeSwap.
In addition to marketplace updates, the team is actively looking for talented creators and partners. Application consideration takes place within 2 days after October 22. NiftyPlanet helps with both the technical part and visualization. Whether it's creating a separate page, an NFT collection, or deploying special smart contracts, the Nifty Planet team is ready to provide a solution. If you have unrealized ideas, just fill out the form.
Crypto winter is the best period for rethinking and for the birth of entire new niches! Now is a good time to work on your own ideas. Why not do it together with market experts from NiftyPlanet? The NFT market will continue to develop and expand no matter what. The moment has come to work with diligence and combined forces. Are you ready?