The bear market has affected most digital assets as users are fed up with losses. Gaming NFTs are one of the categories that are trending downward due to declining investment. Cryptocurrency speculators’ investments have poured billions into risky markets. The results were not very good and many people failed. The influx of capital pushed up the price of assets of lesser value than they were sold.
According to NonFungible.com, NFT average sales have dropped significantly. At the end of April, he was worth $1,754, and by the end of June, it was down to $412. The gaming platform was a flashpoint for NFT sales as it predicted a high ROI for him, but failed to materialize. These changes are not the end. Instead, the decline continues, with some analysts predicting the end of gaming NFTs.
Here’s a quick look at the decline in investment in gaming NFTs and how it affects the market.
The Changing Market for Gaming NFTs
Gaming NFTs are the result of the boom in Web3 technology over the last few years. These NFTs are ownership of game assets on public blockchains such as Ethereum, Cardano and Solana. These NFTs will bring gaming and finance together and spawn a new domain: GameFi. Now that GameFi is available, these assets can now be used outside of the game ecosystem. These assets are bought by third-party exchanges and sold for profit.
Games like Axie Infinity offer an opportunity to earn money along with entertainment. There are tokens for these games available for purchase. AXS is the token of the Axie ecosystem and can be used for various purposes. Sony was one of the recent big companies to launch digital assets but refused to link them to NFTs.
Sony isn’t the only company to distance themselves from NFTs. Rather, many companies preferred to get rid of NFTs because they damaged their reputations. The crisis has affected the DeFi industry, it continues, and could lead to the death of this industry.
Decline or Death for Gaming NFTs?
Gaming moguls also praised NFTs. One of them was Andrew Wilson, CEO of Electronic Arts. He called his NFT the future of gaming, but quickly backed off. Research shows that over 80% of gamers over the age of 18 have not purchased his NFTs. Only his 40% of users were interested in playing and earning games.
According to the chart above, the NFT-500 has a daily change of -0.93%, while the Game-50 shows a daily decrease of -5.79%. Comparing the YTD change, NFT-500 is -1.66% while Game-50 is -72%. Considered a promising future for gaming NFTs, Axie Infinity faced a $600 million hack, impacting the entire market. The Ethereum crash also impacted the market, forcing Axie Infinity’s parent company Sky Mavis to announce partial refunds to affected users.
The collapse of OpenSea is another example that predicts the death of the gaming NFT market. Down 75% since May 2022, it has lost more than 90% of its value over the last six months. A well-known game publisher dared not issue non-fungible tokens for its games as it would have a devastating impact on other businesses. There is still a glimmer of hope as struggling retailer GameStop has announced the sale of more NFTs.
One of the top NFT tokens, ApeCoin, has fallen 7.59% over the past seven days, with its price dropping to $6.91. Axie Infinity’s market cap has dropped to $1.56 billion, while the sandbox is $1.7 billion.
The global NFT market is facing a problem as the bearish trend is dominant. NFTs are trending downward and contain non-fungible tokens in the game. Some companies are trying to revive the market, but there is little hope. Big players like Sony, Axie Infinity preferred to stay away from this market to keep their capital safe.