A DappRadar study has revealed that the market cap of Ethereum NFTs was $9.3 billion at the beginning of 2022, but it fell to $3.7 billion by the end of the year, a drop of 59.6 percent.
Published on February 9, the analysis, which surveyed 81 Ethereum NFT collections, showed that the coin’s price dump significantly impacted the value of Ethereum-based NFTs.
The reports also said that the NFT market peaked at $19.1 billion in February 2022, beating BTC and ETH until the Terra meltdown in May.
By the following month, NFTs had dropped 88 percent in value, and the market reached a year low of $2.2 billion at the end of November when FTX crashed. From that low, the market closed the year up 68 percent.
The analysis claimed that the retraction of the NFT market was caused by “bad actors and market manipulations” rather than a reflection of NFTs’ utility.
In 2022, Yuga Labs dominated the market with its popular CryptoPunks and Bored Ape Yacht Club collections, accounting for 46.7 percent of the total market value. Yuga Labs’ most significant loss came from the Otherdeed collection, which fell 86.15 percent.
There are three collections launched in 2021 or early 2022 that experienced considerable market value increase, namely Azuki with a 113.89 percent gain, Pudgy Penguins with a 260 percent cap growth and Degen Toonz with a 204 percent rise.
The success rate of NFT collections released following Terra’s demise was higher. The analysis reported that Potatoz increased by 134.68 percent, Renga by 211.63 percent, DigiDaigaku by 209.88 percent, and God Hates NFTees by 1,653.2 percent.
The study also tracked collectables’ shrinking slice of the NFT market. Collectables claimed almost 90 percent of the market at the outset of 2022, but by January 2023, that share had dropped significantly to around 75 percent.