The most recent data from the cryptocurrency market reveals a significant downturn in the sales volume of Non-Fungible Tokens (NFTs). In stark contrast to the thriving trade in other crypto sectors throughout March, the NFT market has seen a drop of nearly 14% in the first week of April, marking the fourth straight week of declines. This slump occurs despite the overall surge in transactions on both centralized and decentralized crypto exchanges.
Centralized Exchanges Double Transactions
Centralized cryptocurrency exchanges have nearly doubled their transaction volume in March, boasting a total of $9.1 trillion. This uptick aligns with Bitcoin‘s increase in value and the anticipated block reward halving event expected at the end of April. Nevertheless, this success story in the broader crypto market seems to be eluding the NFT sector, which continues to witness a reduction in sales.
Analyzing the NFT Market Decline
Analytics platform CryptoSlam has reported a downturn in NFT sales across the leading six blockchain platforms, with this trend persisting into early April. Bitcoin NFTs, which saw sales around $67 million, accounted for an 18% decline week-on-week. Similarly, the Ethereum ecosystem, which followed closely with $64 million in sales, also recorded a 9% drop from the previous week.
Legal Repercussions in the Crypto World
In a major development, the U.S. justice system has handed down a four-year prison sentence to Irina Dilkinska, the former legal and compliance director of the OneCoin cryptocurrency fraud. Convicted for her involvement in a scheme that amassed $4 billion, Dilkinska is also accountable for restitution to the tune of $111 million. OneCoin, notorious for its fraudulent practices, operated a pyramid scheme under the guise of a cryptocurrency, promising investors guaranteed returns and bonuses for recruitment.
Points to take into account
- The decline in NFT sales occurs despite an overall surge in cryptocurrency exchange volumes.
- Bitcoin and Ethereum NFT markets are the most affected by the sales drop.
- The cryptocurrency industry continues to face legal challenges, with OneCoin’s legal director facing prison time for fraud.
In contrast to the slumping NFT market, Pantera Capital’s Liquid Token Fund has reported exceptional earnings, with a 66% return in the first quarter of the year, buoyed by gains in assets like Solana, RBN, Aevo, and STX. This report illustrates the diverse nature of the cryptocurrency market, where different sectors may exhibit contrasting performance trends.