DappRadar published a report on February 09, showing a decrease of 59.60% in the Ethereum (ETH) NFT market cap value. ETH NFT’s market cap value depreciated from $9.3 billion in 2022 to $3.7 billion in early 2023.
According to a market capitalization analysis of DappRader, 81 of the most extensive NFT collection active on the Ethereum Network.
DappRadar (@DappRadar) tweet stated:
“The market cap for 81 Ethereum collections analyzed by our machine-learning algorithm experienced a decrease of 59.60% in USD value, from $9.3B at the beginning of 2022 to $3.7B at the end of the year.”
DappRadar attributed the 88% market cap loss of Ethereum-based NFT projects by June to the collapse of Terra Luna in May 2022.
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The decline in the market capitalization of NFT projects was not from a lack of investor participation but due to manipulation by bad actors in the ecosystem. The leading cause of the industry decline was the FTX crash which resulted in the collapse of the global cryptocurrency market and the NFT market cap.
Top Grossing ETH-based NFTs Since 2022
According to the report, some NFT projects launched in 2021 and early 2022 experienced remarkable market cap growth of up to 260%. This growth was seen in the Azuki, Pudgy Penguins, and Degen Toonz collections, with market caps appreciation of 113.89%, 260%, and 204%, respectively.
After the Terra Luna crash, some new NFT projects have emerged, including the Potatoz with a 134.68% increase in market cap, Renga with 211.63%, DigiDaigaku with 209.88%, and God Hates NFT with massive 1,653.28% growth.
It’s admirable that these projects achieved such rapid growth despite the bear market leading to a 60% decrease in the price of ETH, the cryptocurrency utilized by the Ethereum network, over the past year.
Bored Ape Yacht Club Dominates The Market
According to DappRadar, Yuga Labs, creator of the Bored Ape Yacht Club, has emerged as a dominant force in the Ethereum network’s NFT market. The company has secured its position as a top player in the NFT industry, despite the downfall of other projects.
Although Yuga Labs’ holdings accounted for 67% of the total value of the Ethereum NFT market, Bored Ape Yacht Club’s market capitalization fell by 64.92%, from $2.6 billion to $934 million, by the end of 2022.
Despite this, Yuga Labs took a risk by purchasing two of the largest NFT collections, CryptoPunks and Meebits, for an undisclosed sum. Since, collections have recovered strongly, appreciating from a drop of up to 60% in 2022.
With the cryptocurrency market improvement, the NFT ecosystem may finally have a chance to thrive. The recent surge in trading activity for blue-chip collections and the rise of NFTs on the Bitcoin network point to a promising future.