NFT Market Cap Decline Leads to Major Losses for Yuga Labs Collections
A recent report from DappRadar highlights the decline in Ethereum's NFT market cap, which fell from $9.3 billion to $3.7 billion in 2022.
Among the major losses was the Otherdeeds collection from Yuga Labs, which accounted for 67% of the total market cap of Ethereum NFTs and saw a drop of 86% to $356 million, per the report.
The Bored Ape Yacht Club and CryptoPunks collections also experienced significant losses, with market caps decreasing by 65% and 60.24%, respectively.
DappRadar’s machine-learning algorithm also discovered several collections that saw profitability rise during the 2022 crypto winter. The Azuki collection by Chiru Labs appreciated by 1,660% to $1.1 billion, mainly driven by the Beanz collection.
Meanwhile, the Pudgy Penguins collection saw a 478% increase in market cap to $112 million.
READ MORE: What is the Impact of Central Bank Digital Currencies (CBDCs)?
Based on Bitcoin, a new NFT protocol called Ordinals recently re-minted the CryptoPunks collection as Bitcoin Punks. Despite no official marketplace for Ordinals, early data suggests that images are the most popular content type.
A marketplace Discord channel has been launched by the Bitcoin Punks Discord moderator, with traders already engaging in Over-The-Counter transactions using the Sparrow Bitcoin wallet.
While the future of Ordinals remains uncertain, the concept can be traced back to the Colored Coins project in 2013, one of the first expressions of NFTs before Ethereum.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
