But it is too early to declare the end of the line, at least that is the view of all market observers.

Review

The average price of an NFT has fallen more than 50% since its peak in November 2021 and has been around US$2,500 for the past two weeks. That may also be somewhat understandable. After all, the world currently has other things to do than worry about digital graphics and images.

Liquidity has also evaporated in the meantime. Daily trading volume on OpenSea, the largest market for NFTs, fell 80% to around US$50 million in March 2022.

A month earlier, the previous absolute record of US$248 million was reached.

Also, the number of active accounts trading NFTs at least once a week dropped to around 195,000. As recently as November 2021, a high of nearly 400,000 was recorded.

Benchmark: Bored Ape

Board App NFTs are in no way a segment we benchmark against at iMBdigital.Gallery_. Our focus is contemporary photography. However, those digital monkeys are globally known and are thus a spearhead of the NFT seismograph.  

Analyzing data on the OpenSea platform, the average price of a Bored Ape NFT - the collection for hyped NFTs buyers/enthusiasts like Neymar and Snoop Dogg - propped up by just over 50% in the March 2022 phase.

Launched a year ago by startup Yuga Labs, the Bored Ape Yacht Club consists of 10,000 online stickers, each featuring a bored little ape. Because the drawings are created by an algorithm, each monkey has unique colors, clothing and accessories, resulting in some tokens being more common and others less common.

But it's not just about the character: the buyer of the NFTs also gets access to benefits and becomes part of a small club that includes celebrities. At its peak in November 2021, one of these bored monkeys sold for a record US$2.7 million.

The market: atomized. The flow of information: hyper-democratic, with anarchistic traits. 

Listening to life chat rooms on Twitter, studying crypto wallet number-oriented movements and serious analysis reports, the implosion of NFTs mirrors the fall of the primary cryptocurrency, Ether.

Ethereum is currently by far the most important cryptocurrency used to buy NFTs. Since its peak in November 2021, its value has plummeted by more than 40%.

And so have the decentralized assets that token-based blockchain NFTs happen to be. This is nothing more or less than a market correction of speculative assets.

Perceived Outlook

Looking at how young the market is, it is more than clear that the market is far from reaching its peak. So currently the number of buyers is still, or better again, greater than the number of sellers.

Also we at iMBdigital.Gallery_ can state for us that there is a lot of noise and fraud in the NFT sector. The next six months or so will likely be heavily focused on the leading cryptocurrencies in the industry taking the time to develop the blockchain technology so as to increase security and better educate people.

It is important to understand that the criminal gateways are not systemimanently located in the Blockchain, but always occur through bridging technologies to trade cryptocurrencies. Therefore, anyone interested should get a wallet from reputable providers. MetaMask or Trust can be mentioned here, for example. This industry is in a rapid development.