Sales of non-fungible tokens (NFTs) have plunged by more than 54% over the past week as the crypto market dropped sharply.
Over the course of the past week, NFT sales volume reached USD 25m, a drop of 54.6% compared to the earlier week, according to data by NonFungible.com.
Similarly, the number of NFT sales, average value of NFTs, and secondary sales have all taken a plunge, dropping by 22.2%, 41.8%, and 56.7%, respectively.
Blue-chip NFT collections have not been an exception. Sales of Yuga Labs’ Otherdeed NFTs, Bored Ape Yacht Club (BAYC), Azuki, and Mutant Ape Yacht Club (MAYC) have all dropped by more than 50% over the past week, according to data by CryptoSlam.
Among the more popular blue-chip collections, Azuki NFTs have been hit the most. Sales of the collection have dropped by around 77% over the past week, with a 74% drop in the number of new buyers.
The plunge comes after the collection saw heightened interest and an abnormal increase in the number of sales following a blog post by the project’s pseudonymous founder which had pushed down the collection’s starting price by around 45% at the time.
While the decrease in NFT sales is attributed to a mix of factors, the more prominent reason could be the recent crash of Terra‘s algorithmic stablecoin UST, which caused a ripple effect across the entire crypto market.
Meanwhile, major American investment bank Morgan Stanley has recently issued a warning about NFTs, claiming that they could be next to fall after Terra.
“Hyped and leveraged areas of crypto, such as decentralized finance (DeFi) and crypto-backed stablecoins, are seeing mass liquidations, as it is becoming clearer that all the elevated prices were traded on speculation, with limited real user demand,” analysts led by Sheena Shah reportedly said.