After incredible excitement, investor craze for NFT tokens began to wane. Marketplace sales of non-fungible tokens plummeted.
March 2021 was the record month for the non-fungible token (NFT) market by sales volume. According to analytical data by CryptoArt, last month sales volume of NFT tokens only of art pieces amounted to $200 million. This is more than in the entire 2020. In February, NFT sales stood at $91 million, while in January they accounted for tiny $12 million.
NFT tokens reached their peak in popularity when the tokenized collage by street artist Beeple was sold at Christie’s for almost $70 million.
But by the end of March, the NFT token craze demonstrated signs of decline. According to data by NonFungible, the average daily volume of NFT tokens sold on online platforms decreased by 85% by March 25, from $19 million to $3 million. In the last week of March, the total number of sales of non-fungible tokens and unique buyers fell by 30% and 35%, respectively.
According to the NBA Top Shot marketplace (NFT marketplace for NBA trading cards), the total value of NFT outstanding (represented by the total market cap) fell by $800 million from $1.85 billion to $1 billion. According to Assessment.market, the total volume of transactions for the purchase and sale of NFT tokens also declined due to a drop in demand in the secondary market.
In March, the largest market for NFT tokens was the Nifty Gateway platform with sales up to $140 million. SuperRare platform ($30 million) stood at second place in the ranking.