ARTSKY LABS – Ethereum NFT collections lost nearly 60% of their market cap in 2022

It’s been a tough year for Ethereum NFT collections, with their market cap dropping nearly 60% in 2022.

The decline, which started in late 2021, has been attributed to a variety of factors, including the rising cost of Ethereum gas fees, the lack of liquidity in the market, and the influx of new investors.

The Ethereum NFT market had been booming for the past few years, with prices for some collections reaching into the millions of dollars. But the market has been hit hard in the past year, with the market cap dropping from $5.5 billion to $2.2 billion.

The decline has been particularly severe for the top 10 Ethereum NFT collections, which have seen their market cap drop by more than 60%.

The decline in market cap reflects the overall decline in the Ethereum NFT market, which has seen its total value drop from $15.1 billion to $8.3 billion.

The decline has been attributed to a number of factors, including the high cost of Ethereum gas fees, which have made it difficult for investors to purchase and sell NFTs.

In addition, the market has been flooded with new investors, who are often inexperienced and may not understand the risks associated with investing in NFTs. This has led to a lack of liquidity in the market, which has caused prices to drop.

Finally, the influx of new investors has caused a decline in the quality of NFTs being offered on the market, as well as a decrease in the number of buyers.

It remains to be seen if the Ethereum NFT market will recover from its current slump. But for now, it appears that the market has suffered a major setback.