NFT’s CRASH IN Q2 2023
What caused the NFT crash? While the decline in NFT transaction volume can partly be attributed to the plummeting prices of cryptocurrencies, Chainalysis economist Ethan McMahon believes that this alone cannot explain the steep drop. Another contributing factor was an overinflated market, which led to a significant decrease in transaction values.
The excessive hype surrounding specific NFT collections could be the problem with overpriced and market hype like the Bored Ape Yacht Club, where NFTs were being sold for millions of dollars each, and the crypto art by Beeple, which reached astonishing sales values of £40 million for a single piece during the peak of the NFT craze in 2021.