NFT market cools off

January 2022 was a new all time high for the NFT sector, and although activity remains increased, we do see a small pullback in the space. This past week has shown user volume drop on OpenSea by 30%. NFTs, unlike tokens, are illiquid assets dependent on transaction volume and user engagement. With the drop in transaction volume, we see floor prices, which most of the community use as a barometer to value project, have slowly declined, especially with positive price momentum of ETH.

The larger space continues to grow with the launch of new projects and large players entering the fold. Gucci is the most recent brand to purchase land in the metaverse. During earnings calls over the past week, many large firms like Microsoft and Nike have shared their focus and interest in building virtual experiences. Nike did its first branded airdrop to CloneX holders, called MNLTH, on Saturday.

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