NFTs are making a comeback

by James · February 21, 2023

Non-fungible tokens (NFTs) are bouncing back to life after a terrible year, but the aftermath of the prolonged crypto winter is brutal. Trading volume for NFTs across all sectors, from art to gaming, remains well below the values seen last year, and NFT collections have lost billions of dollars in value.

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NFTs are making a comeback

According to data presented by BitcoinCasinos.com, the market value of the world’s second most valuable NFT pool, Bored Ape Yacht Club, has been cut by a whopping $1.5 billion year over year, the largest drop of any top NFT pool.

Its market capitalization fell 47% year-on-year to $1.62 billion in February

Since the crypto market crash, NFT collections have plummeted in value, and BAYC NFTs are the perfect example of how deep the dive was.

The NFTgo data shows the market capitalization of Bored Ape Yacht Club NFT projects available on the Ethereum blockchain and listed on OpenSea was worth approximately $3.11 billion last February. This value increased by another 16% over the next two months, reaching $3.63 billion in April.

After the peak in early 2022, however, the entire NFT market turned around in the second half of the year. In July, the market value of all BAYC collections fell to $1.74 billion, just half of its value in February.

August brought a slight improvement, but it was downhill from there. The market value of BAYC collections continued to fall in the following months, reaching a 2022 low of $1.54 billion in December. Although this figure rose to $1.62 billion in February, this still represents a massive 47% decline compared to the same month a year ago.

The combined market value of the top five NFT collections fell by USD 3.3 billion year-on-year

Although Bored Ape Yacht Club NFT projects suffered the largest market cap decline in 2022, most other top NFT collections have also seen a double-digit drop.

The NFTgo data shows that the market cap of Crypto Punks fell by 34% to $1.69 billion from last week. Otherdeed for Otherside had an even bigger decline. As of May 2022, the market cap for Otherdeed collections was $1.34 billion. Since then, that figure has dropped 42%, reaching $774.8 million last week. Mutant Ape Yacht Club saw a 36% decline, and its market cap fell from $1.17 billion to $742.8 million during that period.

Art Block was the only one among the top NFT collections whose market capitalization increased slightly year-over-year, rising from $825 million to $847 million.

Statistics show that the top five NFT collections have collectively lost $3.3 billion in market value year over year. In February 2022, their combined market cap was $9 billion, and now it’s around $5.6 billion.