Bitcoin And Ether Keep Rising But NFTs Continue To Crash

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Over in the US, there are a few economic dates that will matter later this month. Over in Europe, there’s one later this week (ECB meeting on Thursday).

While the cryptosphere waits for the impact of these economic numbers to translate into prices for Bitcoin, Ethereum and other currencies, there is one market within crypto that keeps crashing, namely that of NFTs.

GDP and interest rates

GDP data which could indicate that the US economy is in a recession (two consecutive quarters of negative growth) will be shown on July 28. Another 75-basis point increase for interest rates could become known by the Federal Reserve on July 27. The ECB will probably indicate later this week whether or not they’ll increase interest rates in the same manner as the US later this week already. With that much economic data coming out, markets are jittery.

However, for NFTs it doesn’t really matter anymore. The market for non-fungible tokens, (once the hottest thing on the planet when an Eminem-rap with Pete Davidson about it was featured on Saturday Night Live), is rapidly evaporating.

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Between May and June 2022, NFT trading volume was reduced by 75%, from $4 billion to $1 billion. Euphoria gave way to despair.

Non-fungible tokens (NFTs) met with unprecedented enthusiasm as from spring of 2021. NFT artist Beeple sold a work for $69 million and after that it just took off until the end of 2021.

During this period, several collections of NFTs that had been released months or even years earlier saw their prices explode. The NFT ecosystem peaked in January 2022 with a record volume of $16 billion. However, since this January peak, the volume recorded by the NFT ecosystem on Ethereum has continued to drop.

Ethereum has seen a rebound rally since, NFTs have not. It will be interesting to see if they can recover if Bitcoin and Ethereum do.