What’s With The NFT Bear Market in 2022?!

    The year 2022 has been tough on all industries, particularly that of NFTs. Now, what’s the deal with people losing faith in the NFT market you might wonder? When the value of Ethereum drops from a worth of $4,800 to a current of $1,600 people kinda have the right to panic. The NFT market crash has definitely sparked up red flags and the term NFT Bear Market spirals into existence. Any kind of investment or finance market uses the term bear market. Just know that it’s not a term exclusive to NFTs.

    What is the NFT Bear Market?

    When the market is doing really well they refer to it as a bull market. However, when a market is flopping out it’s called a bear market. Wonder where these namings stem from and why would they choose these animals. Interestingly enough, these terms are inspired by the way each animal attacks its prey. That is , a bull thrusts its prey up into the air while a bear swipes its prey down. That’s how they attributed the market movement and well you are the prey. Technically speaking, NFT bear market refers to a constant and prolonged price decline in an NFT project or the entire NFT market.  It refers to a receding of at least 20% from a recent high. 

    While the global NFT market witnessed an exponential increase in market size and value since its inception in 2018, there has been a downward slope in its growth since the third quarter of 2022. There’s an estimated 98% decrease in the market’s trading volume since its all-time high volume of $146 billion in April 2022. This dramatic drop in numbers signifies a brutal NFT bear market.DappRadar’s public report suggests that the market is far from reaching a stalemate despite the NFT bear market and is expected to grow at about 6% by the end of the last quarter of 2022. 

    What’s After The NFT Bear Market?

    Bear markets tend to be shorter than bull markets,363 days on average, versus 1,742 days for bull markets. They also tend to be less statistically severe, with average losses of 33% compared with bull market average gains of 159%.

    You should know that the NFT bear market does not necessarily mean that NFTs will die. For example, there are NFT collections such as Street Machines and RENGA that dropped right into the paws of the bear and still had great revenues. Moreover, Reddit Collectible Avatars success made it seem like there is no bear market in place at all. Cointelegraph claims a sharp increase in NFT wallets in 2022 despite the bearish market. So it’s safe to say that this situation is not that big dramatic of a deal. You just need to be extremely careful and smart.

    Will We Survive the Bear Market?

    The NFT bear market will pass and you don’t need to panic. Just keep this point in mind and you can survive a bear market unscathed. It’s a risky time to make an investment so the best advice I can give you for survival is education. You should only invest in businesses you understand. Attempting NFT investments during a bear market foolishly will do you more harm than good. Don’t fall into FOMO schemes and rush into something you barely know anything about. Use all the NFT tools you can find and educate yourself about trading and flipping NFTs.


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