--- title: "Report: The NFT Bubble Could Be Starting to Burst" description: "The NFT market is starting to cool down, Bloomberg reports. The average trading value of the nonfungible tokens has dropped precipitously lately." date: "2022-03-04" modified: "2022-03-04" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/report-the-nft-bubble-could-be-starting-to-burst" categories: - "Blockchain" - "Future Society" - "NFTs" tags: - "cryptocurrencies" - "nfts" - "the digest" --- # Report: The NFT Bubble Could Be Starting to Burst ![The NFT market is starting to cool down, Bloomberg reports. The average trading value of the nonfungible tokens has dropped precipitously lately.]() *\Image: Bored Ape Yacht Club\* ## Bubble Pop? The NFT market is starting to cool down, [*Bloomberg* reports](). The average trading value of the nonfungible tokens has dropped precipitously lately, declining from a record $6,900 at the beginning of the year to under just $2,000, [according to NFT tracker NonFungible](). The trend has only accelerated ever since Russia started the invasion of Ukraine, a great source of global uncertainty that's dealt a major blow to markets across the board. Is this the last stop on the NFT gravy train? There's certainly some evidence that the hype is really starting to cool down — but the situation is more nuanced than that, with the number of unique traders getting into NFTs still on the rise. Besides, as recent history has shown, the crypto world is full of surprises. ## Cutting Losses Global uncertainty and political unrest are likely contributing factors to the overall decline. "What I would say is the last week or so has seen a significant decline — perhaps as much as 40 percent — in floor prices for the most desirable NFTs," *Bloomberg* writer and crypto investor Aaron Brown told *Bloomberg*. Some collectors are starting to cut their losses. One user sold a Bored Ape Yacht Club NFT today for $224,000 in a $67,800 loss, as [*Fortune* points out](). Increased scrutiny from US regulators could also be contributing to the decline. The Securities and Exchange Commission (SEC) announced this week that it's investigating whether NFTs are securities and should therefore be regulated as such, [according to a separate *Bloomberg* report](). ## Mixed Messages It's also a jumble of mixed signals, as not every NFT marketplace is affected. Bored Ape Yacht Club NFTs saw sales rocketing 59 percent over the last week, [according to NFT data management website DappRadar](). CryptoPunks were also [up 118 percent](). "Trading volumes are down in general, but the demand measured by the number of unique traders and sales count is increasing," Dapp Radar analyst Pedro Herrera told *Bloomberg*. "So while we’re seeing less volume, there’s more activity, even though Ukraine’s conflict is definitely driving away the attention from trading." It's hard to say where the NFT market is headed next. And in the crypto world, it wouldn't be the first dip and subsequent rise. **READ MORE:** [NFT Mania Show Signs of Cooling as Average Price and Sales Decline]() \[*Bloomberg*\] **More on NFTs:** *[Knockoff eBay NFTs Are Kind of Based, Actually]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()