NFTs hit the brakes: Market cap tanks 46% in just 30 days

💡 DMK Insight

The NFT market’s value dropping nearly 50% in a month is a stark warning for traders: liquidity is drying up. When even top-tier collections like BAYC and CryptoPunks are losing value, it signals a broader sentiment shift. This decline could be tied to macroeconomic pressures, such as rising interest rates and inflation concerns, which are making speculative assets less attractive. Traders should be cautious, as this downturn might lead to further sell-offs, especially in less established collections. Watch for potential support levels in the NFT space; if major collections break below key price points, it could trigger a cascade effect across the market. On the flip side, this could present buying opportunities for those looking to accumulate undervalued assets. However, timing is crucial—monitor the daily trading volumes and sentiment indicators closely. If volumes remain low, it might be wise to hold off on new positions until a clearer trend emerges.