Is NFT industry entering mini-bear market?

In what data aggregator CryptoSlam refers to as a "mini-bear market," the number of unique non-fungible token (NFT) purchases has dropped below 800,000, breaking a three-month trend.


The NFT market had 796,009 unique consumers in February, down 12% from the all-time high reached in January.
NFT

The NFT market had 796,009 unique consumers in February, down 12% from the all-time high reached in January.


February also saw a 40% drop in sales volume from January's US$4.4 billion, which was just shy of the August record of US$4.5 billion.


With global markets beset by uncertainty as a result of the Ukraine situation, many NFT investors are expecting that the new digital asset class will prove to be a viable alternative, just as bitcoin did for investors during the Covid-fueled March 2020 market crash.


"Historically, NFT bad markets are very short-lived," CryptoSlam chief blockchain officer Yohann Calpu told Forkast, "and given the 70x of NFT sales since Nov. 2020, a cool off is expected."


"Culture, music, art, gaming, and collectible NFTs are set to be put to the test in market conditions," according to Calpu.