The question of why NFTs have taken the brunt of the crypto crash and will it recover

ambcrypto.com:

The crypto market has taken huge hits in recent weeks with $500 billion being wiped out of it. The NFT market is among the first ones to take the huge brunt of it. The euphoria around the NFTs has cooled down recently which has opened the floodgates to losses across the board. The NFT sales volume by May has roughly equaled last year’s entire total of $40 billion but there’s a catch.

In a weekly update by IntoTheBlock’s Head of research, Lucas Outumuro, briefed on the recent downfall of the NFT marketplace. He pointed out in the study that the ‘furthest assets in the risk segment are getting crushed’. Despite starting the year on a high, the NFT transaction volume has dropped spectacularly.

Take the example of the Bored Ape Yacht Club that has fallen by a massive 60%. The report says,

“Buying a BAYC NFT at floor price four weeks ago would have resulted in a loss of nearly a quarter of a million dollars. This coincides with a drop in Ether’s price, which is the main currency in which NFTs are traded. However, ETH is down “only” 30% in May, while most NFT collections have lost over half of their value.”

Source: IntoTheBlock

The crash in the NFT prices eventually led to a dramatic downturn in trading volumes. The NFT market was unable to carry the momentum earlier from the year and plummeted starting April.

In January alone, the transaction volume was above $16 billion but it crashed down to just $4 billion (so far) in May. As per TechCrunch, Coinbase’s NFT marketplace has disappointed so far, trading under a million dollars worth of NFTs and less than 2,000 users.

Source: IntoTheBlock

With stark drops in prices and trading volumes, there was a drop in the social sentiment for NFTs. Similar to its trading volume, the Google