According to data from CoinGecko, the market capitalization of the cryptocurrency market peaked at over US$3 trillion in November 2021.

Yet, it was only in January 2022, when the total crypto market cap had already fallen to US$1.65 trillion, that the NFT market found its top. According to the Forkast 500 NFT Index, a gauge for NFT market performance, the market’s peak came on Jan. 19, 2022.

This is not the only example of erratic price behavior. Data suggests that not only the peaks differ, but the valleys too.

The crypto industry reached its lowest level in recent years in December 2022. That followed the collapse of the FTX cryptocurrency exchange, leading to the current extended bear market. However, the NFT space is only now finding its bottom. The Forkast 500 NFT index value dropped below 2,000 on Sept. 24, the first time it has done so since data recording started in January 2022.

Carlos Prada, the CEO of blockchain accelerator Masterblox, believes that the market will continue falling as the previous surge in NFT demand was predominantly catalyzed by traditional retail liquidity.

“A discernible shift has been observed as these investors, with a maturing understanding of the digital asset space, recalibrate their strategies, often distancing themselves from transient market exuberance. This is palpable not only in the NFT domain but also in emergent sectors such as the metaverse and play-to-earn ecosystems,” said Prada.

“As we pivot our focus to capital inflow, particularly from the venture side, the current scenario paints a rather tepid picture. The influx of capital into NFT-centric enterprises, including those underpinning the infrastructure, appears to be negligible,” he added.