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The NFT market on the Ethereum blockchain saw a sharp decline in market capitalization in 2022, according to a report from DappRadar. Despite being a key driver of the dapp industry, its market cap is estimated at $3.7 billion, a decrease of 59.60% in USD value from the beginning of the year.
Despite this setback, the NFT market is showing positive signs of recovery, with a 68% increase in value from November 2022 to $3.7 billion. Yuga Labs, a leading player in the NFT industry, holds 67% of the Ethereum NFT market cap.
Source: DappRadarIn 2022, the NFT market saw a boom in growth and hype, reaching its highest value of $19.1 billion in February. However, this growth was not sustainable, and the Terra Luna collapse in May 2022 and FTX collapse in November had a devastating impact on the NFT market.
These events decreased value from $19.1 billion to $2.2 billion by the end of November. Despite these challenges, the NFT market is showing promising signs of recovery, with the market cap closing the year at $3.7 billion and positive on-chain metrics seen in January 2023.
Yuga Labs Dominates Ethereum NFT Market CapYuga Labs has established itself as a leading player in the NFT industry, with its NFT collections holding 67% of the entire Ethereum NFT market value.
CryptoPunks and Bored Ape Yacht Club are two of the most highly valued NFT collections, holding 46.7% of the Ethereum market cap. Bored Ape Yacht Club, in particular, stands out as the first NFT collection to offer full ownership and commercial usage rights to its owners.
However, despite its strong start in 2022 with a market cap evaluation of $2.6 billion, the Bored Ape Yacht Club experienced a 64.92% decrease in its market cap by the end of the year.
In spite of these challenges faced by the Ethereum NFT market in 2022, many promising projects emerged from the bear market, showcasing the potential of unique digital assets.
The NFT market continues to grow, with the number of brands and use cases adopting digital collectibles rising. As the market continues to evolve, it will be interesting to see how the Ethereum NFT market develops in the coming years.
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