The cryptocurrency market is facing a downturn, and so are the NFTs’ prices and sales. The factor for the NFTs’ downward is the algorithmic stablecoin TerraUSD (UST) and its crash. The reason behind this downturn is the de-pegging of UST which caused extreme fear in the market.
To put it another way, the Bored Ape Yacht Club (BAYC) NFT collection floor’s price dropped to $1.7 million. This makes 25% less than its previous week’s rate of 88 ETH or $1.7 million. In the same time span, the floor price of CryptoPunks also dropped by 15% to 52.5 ETH.
The Crypto Market Weakens
As we can see, this week’s crypto market is weakened mainly by the loss of the UST peg to the US dollar. Analyzing the data, we can conclude that Ethereum (ETH) dropped below $2,000, while other tokens have also been under pressure. In the meantime, Bitcoin (BTC) is trading below $30,000 on the open market.
Correspondingly, this event of UST affected the NFT space too. As a result, NFT investors saw the effects of the algorithmic stablecoin loss. In this case, they could see their assets’ value decrease as well.
Following the shrunk of NFT market liquidity, the price is on the same path of falling too. According to data from CryptoSlam, global sales volumes decreased by 41% in the last 24 hours.
In light of the losses in the NFT markets, a lot of projects were victims. Ethereum is an example of these losses. Besides Ethereum, Solana also suffered this downturn. As reported by CryptoSlam, sales of Solana dropped by 21% on the last day. Also, the largest collection on Solana, called Okay Bears, suffered a 19% drop in sales.