The cryptocurrency market is in disarray, with market indices pointing to a steady price drop over the past few days. More than $200 million is reportedly liquidating the crypto market as the flagship crypto, Bitcoin, is sliding toward the $20,000 price mark.
On the other hand, the second-largest cryptocurrency, Ethereum, also suffered on the same date as Bitcoin. The interesting thing about the market setback is that investors are willing to purchase the dip.
No Time to Spare as NFT Plunges
Following the crash of the crypto market, the NFT space also suffered a significant decline in value, with major projects not spared. For example, the value of Bored Ape Yacht Club (BAYC) has plunged by 49% as the floor price sheds some value against the USD.
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At the time of writing, other projects also suffered considerable losses. Azuki shed 47%, Meebits 54%, and CloneX 57%. Meanwhile, NFTGO revealed that BAYC recorded more than 85% of the most expensive NFT transactions over the past week.
This indicates that investors are looking to buy BAYC amid the bear market, thus opening the door for further transactions.
However, a large decline in the NFT floor price aided investors in buying the BAYC collections at an affordable price. Data from the NFT price floor shows that the floor price of BAYC is below $100,000.
In the meantime, the price of Bored Apes is $85,500, indicating a steep decline of 65% from its all-time high price. And the last time the BAYC traded at the same price was in January of this year. Additionally, as the crypto market has plummeted, the trade volume for NFT has remarkably increased.
The NFT Market Recovers Some Ground
Over the past 24 hours, the NFT market has been steadily recovering from the initial setback, with prices increasing. According to CryptoSlam, the NFT market’s trading volume has surged by 40% in the past 24 hours.
Amid the increase, Moonbirds NFT, MAYC, and other projects have declined further.
As expected, the rise in trading volumes attracts investors as they take advantage of the opportunity to buy the dip. The sudden turn of events has led to the suggestion that the NFT space would benefit from investors purchasing NFTs during the bear period.
Moreover, statistics from DappRadar show that the NFT market recorded $25 billion in trade volume last year. Industry experts believe the market is on course to surpass the previous record as the industry keeps expanding.
Furthermore, the Nansen 2022 quarterly report revealed that the NFT market outperformed that of cryptocurrency. This is evidenced by the index price increase of NFT, which shot to 49.9% before the end had even ended.
The wide performance between the two industries is largely due to their unique structures and market exposure to risks. While the crypto market is highly volatile, that of the NFT is less likely to follow the former’s pattern.