Cardano’s NFT Performance Index Plummets as Users Switch to New Projects
The Cardano NFT ecosystem has been experiencing a significant decline, according to recent reports. The performance index of the Cardano NFT market has dropped by 15.5% in the past 30 days, indicating that Cardano users have been selling off top projects to move onto newer ones. This shift has resulted in a decrease in the number of buyers and an increase in the number of sellers. The decline is also evident in the Forkast CAR NFT Composite index, which shows a decrease in NFT trading activities in the Cardano ecosystem.
The decline in Cardano’s NFT ecosystem is part of a larger drop in the NFT market, with the Forkast NFT 500 index decreasing by 2.31% compared to the same period. Despite the overall decline, two collections, Ennaya of Tonire and Magic Kongs, accounted for approximately 11.5% of the total NFT sales in the network.
According to data from CryptoSlam, the total number of Cardano NFT buyers has decreased by 22.3% in the past 30 days. However, the number of sellers has increased by 190%, but the total number is only 1,110, significantly lower than the all-time high of 156,552 recorded in October 2021.
Cardano traders may hope that the recent launch of the native wallet can help boost the NFT context of the blockchain. On Tuesday, developers at IOG, the Cardano developer, announced the launch of Lace, the first native wallet for the Cardano network. Lace allows users to send and receive Cardano digital assets, including NFTs.
The decline in Cardano’s NFT ecosystem may be a cause for concern for some traders and investors, but it is important to note that this is a normal market cycle. The decline may be attributed to the hype around newer projects, and traders may be taking profits from their earlier investments. The launch of Lace 1.0, the native wallet, may bring some new life to the ecosystem and attract more users to the network. Nevertheless, traders should remain cautious and informed when investing in the NFT market.
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