Crypto winter has been directly affecting the NFT industry for months now. 5 months into the crash, NFT sales recorded a 12-month low, causing chaos among the crypto and NFT community.
As Bitcoin drops below $19,000, the NFT sales are also struggling to maintain their floor prices. With the cryptocurrency crash, the buyers are least interested in buying NFTs.
According to Chainalysis data, although the NFT industry surpassed its previous year's sales from $40B to $42B, these sales were only recorded in the months of January and February.
After that, the NFT market is seeing a drop in its floor prices. However, some NFTs seem to be doing quite well. BAYC, one of the best-selling blue-chip NFTs, only dropped 1% to $90,000 for its cheapest Bored Ape.
However, experts believe the NFT crash has also brought much interest in small NFT projects such as goblintown.wtf. This NFT collection was dropped 2 months ago and already surpassed many blue-chip NFTs in terms of its sales. Currently, the collection ranks top5 across various NFT marketplaces.
This shows that people do trust the NFT industry but the crypto market is preventing them from taking the risk of buying any expensive NFTs.
Other than the NFT industry, the DeFi industry also seems to be struggling with the largest crypto firm, 3AC, on the verge of bankruptcy.
Unless Bitcoin recovers from its low prices, the NFT and DeFi markets are most likely to decline in the coming weeks.