Plunging Crypto Markets Forged a Shadow Over the Opening of the World’s Largest NFT Convention: “It is In all probability Gonna Be a Big Cry Fest”

The fourth annual NFT.NYC conference began today, with 1,500 presenters displaying their bright new NFT memorabilia.

The speakers will take the stage at a time when crypto markets are plummeting hard—Bitcoin and Ether have both lost more than 70% of their value since November. The news is rife with stories about crypto companies imploding and the NFT market is feeling the pinch. Overall, this is a bad moment to be selling NFTs. New NFT initiatives aren’t gaining traction the way they were a year or even a few months ago.

Takashi Murakami, a Japanese artist, recently apologized to his followers on Twitter after the prices of his flower NFTs, which were introduced in May, plummeted.

Francis Kim, the Australian-based entrepreneur behind the NFT project AI-Zuki, is facing similar difficulties. “I launched my collection like two days ago. I’ve not seen my millions yet,” he half-jokingly told Artnet News. “Bad timing maybe.”

Because most transaction data originates from the NFT markets, it is difficult to acquire a clear picture of what is going on in the NFT market. Platform volume, floor pricing on blue-chip NFT projects, and market mood are the three key indicators of market performance, and none of them are looking good right now.

Although OpenSea is the busiest NFT platform, its average selling price, number of traders, and sales volume are all declining. On May 20, the platform’s daily trade volume was $43 million; on Tuesday, it was less than half that, at 17 million.

Coinbase invested $600 million on its new NFT marketplace, which was expected to infuse new growth into the struggling crypto exchange, but it hasn’t taken off as anticipated. According to Dune, after generating $75,000 in trade volume when it first opened its doors to the public on May 4, activity has decreased to only $19,000 on June 20. In the midst of the crisis, the company just announced that it will lay off one-fifth of its workforce.

Collections of so-called “blue-chip” NFTs are also in trouble. Bored Ape Yacht Club, one of the most popular ethereum NFT projects with over $2.2 billion in trading volume to date, has suffered a dip in activity as a result of the market disruption. The lowest available Bored Ape NFT has dropped more than 13% in the last 30 days, with a current price of 80 ETH ($91,000), according to NFT Floor Price.

ApeCoin, the token of the Bored Ape Yacht Club ecosystem and its upcoming game Otherside, has lost 85 percent of its value. According to CoinGecko, it peaked at $27.57 on April 28, just before the Bored Ape Yacht Club started its Otherside property sale, and is presently trading at a low $4.48.

CrytpoPunks, too, has been affected by the crash. According to NFT Floor Price, its floor price is 67 ETH ($76,000), down 33% in the previous 30 days. In addition, Meebits, which was established in 2021 by Larva Labs, the same company that produced CryptoPunks, is down 5% in the previous 30 days, with a floor price of 4.8 ETH ($5,472).

Yuga Labs currently oversees all three of these “decentralized” collections, which constitute the top NFT collectibles.

Market mood is deteriorating as the voices of NFT opponents become more audible in the bear market.