A-Z of how NFT ecosystem has been impacted by the potential collapse of FTX

11 November 2022

in NFT

Reading Time: 5 mins read

Since news broke about the potential collapse of FTX, interest in NFTs has dropped.
The NFTs ecosystem has been hit with a drop in general market capitalization, sales volume, transactions count in the last four days

As the rest of the cryptocurrency market reels under the negative impact of the potential collapse of FTX, the NFTs ecosystem was not left out.

Since the FTX debacle started on 7 November, there has been a drop in NFTs sales volume, market capitalization, the daily count of NFTs traded, the number of traders in the market, and many more.

An assessment of the performance of blue chip NFTs revealed a significant drop in Blue Chip Index in the last four days. According to NFTGo, Blue Chip Index is calculated by weighting the market cap (ETH/USD) of blue chip collections to reflect their performance.

The NFT collections that make up the Blue Chip NFTs category include but are not limited to Bored Ape Yacht Club, Cool Cats, CryptoPunks, Art Blocks, and CloneX.

Per data from NFTGo, measured in ETH, Blue Chip Index stood at 8,801, at the time of writing. However, since 7 November, this has dropped by 6%.

Source: NFTGo

There is more

In addition to a decline in Blue Chip NFT index, the last four days have been marked by a decline in the total market capitalization and sales volume in the NFTs’ general ecosystem.

According to data from NFTGo, since 7 November, the total market capitalization of the NFTs market has fallen by 8%. Furthermore, within the same period, total sales volume dropped by 32%.

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Source: NFTGo

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For context, the daily NFTs transactions count on leading platforms like OpenSea, NFTX, and LooksRare has dropped significantly in the last four days.

According to data from Dune Analytics, in the last four days, daily transactions count has dropped by 41% on OpenSea, 11% on NFTX, and 48% on LooksRare.

Source: Dune Analytics

The total NFTs transactions count within the period under review has also declined by 41%, data from Dune Analytics revealed.

Lastly, the number of traders that traded NFTs since 7 November across the various existing marketplaces fell as well.

At 24,559 traders at press time, this has declined by 29% in the last four days, data from Dune Analytics showed. As of 7 November, 34,804 traders bought and sold various NFT collections.