Non-fungible token (NFT) sales have dropped by more than 54% in the last week as the crypto market has plummeted.
According to data from NonFungible.com, NFT sales volume reached USD 25 million last week, a 54.6 percent decrease from the previous week.
Likewise, the number of NFT sales, average NFT value, and secondary sales have all decreased by 22.2 percent, 41.8 percent, and 56.7 percent, respectively.
The exception has been blue-chip NFT collections. According to CryptoSlam data, sales of Yuga Labs' Otherdeed NFTs, Bored Ape Yacht Club (BAYC), Azuki, and Mutant Ape Yacht Club (MAYC) have all dropped by more than 50% in the last week.
Azuki NFTs have been the hardest hit of the popular blue-chip collections. The collection's sales have dropped by around 77 percent in the last week, with a 74 percent decrease in new buyers.
Following a blog post by the project's pseudonymous founder, which lowered the collection's starting price by around 45 percent at the time, the collection saw increased interest and an unusual increase in the number of sales.
The recent crash of Terra's algorithmic stablecoin UST, which caused a ripple effect across the entire crypto market, could be one of the more prominent reasons for the drop in NFT sales.
Meanwhile, Morgan Stanley, a major American investment bank, has issued a warning about NFTs, claiming that they may be the next to fall after Terra.
"Hyped and leveraged areas of crypto, such as decentralized finance (DeFi) and crypto-backed stablecoins, are seeing mass liquidations, as it is becoming clearer that all the elevated prices were traded on speculation, with limited real user demand," according to analysts led by Sheena Shah.
By fLEXI tEAM