December 27, 2022

2022 in Review: NFTs from Peak to Trough

NFTs in NYC

NFTs in NYC

The year 2022 was really tough for the NFTs (non-fungible tokens), as it represented a real examination of its strength after being widely spread among the people worldwide in 2021. However, this year witnessed the release of new NFT collections by big names in various industries like online gaming, fashion, automotive, entertainment, and more.

Dolce & Gabbana, Gucci, Nike, Burberry, Givenchy, Gucci, Jimmy Choo, Louis Vuitton, Lamborghini, Porsche, Chevrolet, Alfa Romeo, Ferrari, Instagram, Reddit, Disney, and more brands announced their plans to release digital collectibles on the blockchain in 2022.

Such wide adoption built a larger base of holders in the NFT industry, a matter that serves as a foundation for the proliferation of the sector in the years to come, Forbes said in a report on the NFT market in 2022.

Market Overview

Regarding the NFT market overview, Forbes said the NFT market in 2022 saw a true hype cycle for the first time. The trading volume reached its climax in the early month of 2022 before witnessing a significant downward trend. Nevertheless, the NFT market saw more holders.

NFT Market Cap & Volume in 2022 – Source: NFTGo

The US magazine collected data from the analytics platform NFTGo to show the performance of the NFT market throughout the year. The NFT market cap reached its peak in March at a value of $35 billion, while it stands at $21.8 billion in December, representing about a 40% decline. Likewise, the NFT trading volume hiked in the first half of this year, hitting $1.3 billion in April before seeing a decrease by more than 90% to reach only $115 million in December.

NFT Sales

As for the sales in 2022, May witnessed the greatest activity this year, according to data from NonFungible.com. The NFT sales on May 1 surpassed $809 million. While on December 27, the sales recorded only more than $18 million.

NFT Sales in 2022 – Source: NonFungible.com

NFT Marketplaces

Regarding the performance of NFT marketplaces this year, Opensea secured the lion’s share in terms of volume, users, and sales, according to Dune Analytics. As for the users’ distribution, 72.9% of the users were for Opensea with more than 1.3 million users over the fourth quarter, followed by Blur with 172,000 users only.

According to Forbes, Blur had more daily trading volume than OpenSea over the fourth quarter, reaching a peak of 52,000 ETH traded (~$62.4 million), compared with OpenSea’s 13,000 ETH (~$15.6 million) in mid-December.

The report expected that the NFTs would play a greater role in the metaverse and Web 3.0 world, pointing out that this technology would open the door for the tokenization and financialization of culture.

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