The market for non-fungible tokens took a beating in May amid turmoil in the cryptocurrency sector, according to industry data.
- According to multiple reports, transaction volumes and prices went into a steep decline during the month, with data from NonFungible.com showing US$138.5 million in transactions on the May 7 market peak, but analysis by website Protos suggesting that only US$19.4 million of sales were made during the past seven days, implying a nosedive of around 86%.
- Analysts say the cryptocurrency market rout in May meant that significant sums that had flowed into cryptos on the basis of hype and speculation rapidly flowed back out again, and that the NFT market experienced a corresponding capital drain, according to a report by the Finance Magnates website.
- Bloomberg reported a slump in the NFT market two months ago, citing a dive of almost 70% in average transaction prices from an earlier peak in February.