In more than a decade, a precedent has been set for the cryptocurrency sector. That particular precedent revolves around the bearish and bullish movements of cryptocurrencies. Time after time, cryptocurrencies have experienced such trends. Surprisingly, every time, the rises and the falls have been recorded as taking place in the entirety of the crypto-verse.
Current Trend of the Overall Crypto Sector
One of the major examples of the overall bullish trend for cryptocurrencies was the period from December 2020 to April 2021. During this time, the cryptocurrencies thrived and each major cryptocurrency was able to hit its all-time high.
The particular time period was a huge breakthrough for cryptocurrencies. The particular tenure helped cryptocurrencies gain tremendous adoption in the mainstream industry. Then came the downtrend, which was caused due to many reasons.
From May of 2021 to the present, the downtrend has been ongoing, witnessing huge plummets from time to time. It has seen all major cryptocurrencies exhibit 2 year lows such as Bitcoin, Ethereum, and many more.
The overall market capitalization of the cryptocurrency sector was over $2.5 trillion during its prime period. Now, the overall capitalization of the cryptocurrency industry is less than $1.3 trillion.
The Downtrend has reached to NFTs
Back in early 2021, the NFT space started to gain public attention and witnessed a growth in its momentum. By its nature, the NFT space proved that it was unaffected by the overall rise and fall of the overall cryptocurrencies.
The sector continued gaining so much attention that it has become the favorite and preferred space among celebrities, sports players, and others related to the same fields.
So far, the NFT space has rooted out in many fields both within the crypto environment as well as the mainstream environment. However, the NFT space that has gained the highest amount of recognition and popularity is the artwork sector.
Dip in the NFT Artwork Space
Not only the celebrities, but even the commoners have profited tremendously from NFT artworks. People can easily make them for free as well and sell them to make a living. This is the reason why the sector has gained so much popularity in a matter of a year.
Although the NFT sector managed to hold its own throughout the crypto downtrend. Now it seems that the constant downtrend has got to the NFT artwork sector.
In the month of May, the overall sales for the NFTs plummeted by over 54%. A week prior to the last one, the overall sales for the NFTs artworks were worth more than $50 million. However, the sales recorded in the past week were worth $25 million, showing a huge drop.
Sales for all major NFT developers such as Otherdeed, Azuki, BAYC, and MAYC have also experienced dips. This means that the values of the NFTs have also experienced dips and the trend may not uplift until the overall cryptocurrency industry does.
It is strongly suggested that the investors do not lose hope and hold on to their NFTs. They will be able to sell their NFTs for higher prices once the trend picks up.