• According to DappRadar, the total worth of the NFT ecosystem went from $9.3B to $3.7B in 2022 — a 59.6% drop.
• Terra Luna’s collapse in May 2022 caused an 88% market cap loss of NFT projects running on Ethereum by June 2022.
• Some projects launched during 2021 and early 2022 had “significant market cap growth” of up to 260%.

Ethereum NFT Market Cap Dropped by 60% Over The Last Year

According to DappRadar, the total worth of the NFT ecosystem went from $9.3B to $3.7B in 2022 — a 59.6% drop. On February 9th, DappRadar published a report showing that the Ethereum NFT market cap value fell by 59.60% from $9.3 billion in 2022 to around $3.7 billion in early 2023.

Main Cause Of The Drop

DappRadar’s study is based on the marketcap analysis of 81 of the largest NFT collections running on the Ethereum network and it was revealed that Terra Luna’s collapse in May 2022 was the main cause of the 88% market cap loss of NFT projects running on Ethereum by June 2022; leading to an overall collapse of crypto industry due to lack of investor interest in these projects and manipulations done by bad actors in this space.

Highest Earning Projects On Ethereum

The report noted that some projects launched during 2021 and early 2022 had “significant market cap growth” of up to 260%. Among those projects were Azuki, Pudgy Penguins, CryptoPunks and CryptoKitties with their respective highest earning collections being Terra Tots (Terra Luna), Cryptopunks Series 3 & 4 (Azuki), Pudgy Penguins Series 2 (Pudgy Penguins) and CryptoKitties Series 1 (CryptoKitties).

Analysis Of Market By DappRadar

DappRadar’s machine-learning algorithm experienced a decrease of 59.60% in USD value for these 81 collections from $9.3B at beginning of year till now when it stands at around $3.7 B as reported on February 9th 2023 according to their findings released recently through their website as well as other social media platforms like Twitter etc..

Conclusion

Despite this fall , there are still several strong contenders among these 81 collections which have been able to maintain their respective businesses having significant growths over past few months, indicating potential for further growth for those who are ready for investing into crypto industry markets including Non Fungible Token markets like Ethereum etc..