NFT Sales Drop 92% Since September’s High

The NFT market seems to be doing poorly, if the daily average of 19,000 this week is any indication – a drop of 92% from its September peak, The Wall Street Journal wrote.

At that time the market had around 225,000 sales.

The number of active wallets for NFTs also dropped around 88%, hitting 14,000 last week, rather than the high of 119,000 in November.

The reasons include the rising interest rates, which have put a squeeze on riskier bets in the financial markets, in which NFTs are some of the most speculative.

The Nasdaq Composite, which is heavy on tech, hit highs in November. But the report notes that it’s fallen 23%, while bitcoin has fallen by 43%.

The Federal Reserve is also slated to raise rates in the coming weeks as well as next month. And the report says as the central bank’s easy money policies end, investors have had to take on more defensive positions, like consumer staple stocks.

Many NFT owners have been finding that their investments aren’t as good as when they’d bought them.

For instance, one buyer bought a Snoop Dog curated NFT, “Doggy #4292,” which sold for around $32,000 in early April. The NFT is an image of a green-skinned astronaut standing on a Hollywood Walk of Fame star or something similar, is now selling for $25.5 million, though the highest current bid at the time of the report was for around $210.

PYMNTS wrote that Solana’s blockchain was knocked offline due to a NFT project.

See more: Another Blockchain Overwhelmed by NFT Transactions as Solana Crashes Outright

The blockchain, in a postmortem, reportedly was down for seven hours as bots swarmed overloading it while trying to win a limited edition NFT, during a mining event on NFT platform Metaplex Candy Machine.

Solana was reportedly hit with 6 million transaction requests per second, which ended up maxing out the memory and crashed enough of the 1,730 nodes that there wasn’t enough votes to approve new blocks.