(NFT) sales fell sharply in the third quarter as crypto investors lurched in anticipation of “crypto winter,” and demand for the highly speculative digital asset shows little sign of recovery

According to DappRadar, NFT sales were $3.4 billion in the third quarter of 2022, up from $8.4 billion in the previous quarter and $12.5 billion at the market peak in the first quarter of the year.

While the fledgling NFT market benefited from rising cryptocurrency prices and investors’ high-risk appetite in 2021, those conditions changed dramatically in 2022 as rising central bank rates prompted investors to abandon risky assets.

Sales in the largest NFT market, OpenSea, fell for the fifth straight month in September.

“I THINK WHAT MAKES THIS ENVIRONMENT UNIQUE IS THAT IT IS AT THE INTERSECTION OF BOTH THE MACROECONOMIC DOWNTURN AND THE CRYPTO-WINTER. PREVIOUS CRYPTO WINTERS HAVE BEEN A LITTLE MORE INSULATED FROM CRYPTOCURRENCY PRICES, SO I THINK IT’S WISE TO BE CAUTIOUS ABOUT HOW LONG THIS MAY CONTINUE,” SAID DEVIN FINZER, CEO OF OPENSEA

He noted, however, that the company is in a “good financial position,” and he is encouraged by NFT’s long-term potential, calling the downturn a “building phase.”

According to market tracker NonFungible.com, NFT’s weekly number of buyers has more than halved from its peak in late January.

While the traditional art market quickly picked up on the craze, sales volumes dried up, with NFT sales at Christie’s, Sotheby’s, Phillips and Bonhams collectively totaling $9.41 million since the beginning of the year, compared with $130 million in the same period last year.

Recall, that in September, we reported that users have lost interest in NFTs

https://altcoin.ng/nft-sales-collapsed-by-60-in-the-third-quarter/