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TEXXR

Chronicles

The story behind the story

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Chainalysis: NFT sales totaled just over $1B in June 2022, a 12-month low since June 2021 when sales were $648M; sales reached a peak of $12.6B in January 2022

Sales of non-fungible tokens totalled just over $1bn in June, compared with peak of $12.6bn in January

The Guardian Dan Milmo

Context & Ripple Effects

Chainalysis' June figure closes the loop on a boom it helped document: after users spent $26.9B+ on NFTs across 2021, with CryptoPunks alone clearing $3B, monthly sales have collapsed to just over $1B — a 92% slide from January's $12.6B peak and barely above June 2021's $648M baseline.

The pattern rhymes with an earlier warning sign most coverage missed: NonFungible.com already showed the average NFT price falling from over $4,000 to ~$1,256 in spring 2021, meaning volume kept rising long after per-unit demand peaked. June 2022 is when the volume finally followed.

First-order effects

  • Marketplaces and collections that priced operations off January-era fee volumes face a revenue base roughly one-twelfth the size of six months earlier, with CryptoPunks-style blue chips now carrying a market that small-ticket trades (most under $10K) no longer sustain.
  • Holders who bought near the January peak are sitting on assets in a market where monthly turnover has fallen back to pre-boom levels, sharply thinning exit liquidity.

Second-order effects

  • Trading-fee-dependent NFT platforms must chase fewer transactions with incentives or lower fees, pressuring margins across every marketplace competing for the same shrinking pool of active traders.
  • Capital and attention rotate back toward cryptocurrencies themselves, leaving NFT-specific infrastructure — wallets, analytics, launchpad services — fighting over a contracting pie rather than expanding with the broader crypto market.

Third-order effects

  • The cycle mirrors what Chainalysis measured before: its data showed Bitcoin flowing to major processing services collapsing from $412M to $69M after the 2017-18 crypto bust, suggesting NFT speculation is following the same boom-bust cadence rather than establishing a new durable asset class.
  • If the floor holds near the June 2021 level (~$650M-$1B/month), the structural outcome is a two-tier NFT market: sustained liquidity concentrated in a handful of blue-chip collections while long-tail projects become effectively illiquid.

The trend: NFTs are deflating along the classic crypto-cycle curve — from a $12.6B January peak toward their pre-boom baseline — with the surviving market consolidating around blue-chip collections.

Discussion

  • @cypherspace Rich on x
    @charlesarthur It's just two guys selling NFTs to each other 500 million times.
  • @charlesarthur Charles Arthur on x
    A flipping BILLION?? I thought people had caught on to its pointlessness. I'm astonished it was in single figures, unless this is some amazing piece of money laundering. https://twitter.com/...
  • @hkanji Hussein Kanji on x
    Bad news for NFT bulls https://www.bloomberg.com/...
  • @lordravenscraft Eric Ravenscraft on x
    the thing about the “people had doubts about the early internet, too!” arguments is even when some people were going “who's gonna wanna go to a web site for sports scores???” there was never a time when, say, internet usage just dropped off a cliff like this https://twitter.com/.…
  • @flourishingai @flourishingai on x
    We expect accelerating consolidation in NFT markets around built-out #gaming worlds delivering actual game value tied to ownership at the expense of purely speculative NFTs (the latter of which looks to be in free fall). https://www.theguardian.com/ ...
  • @libshipwreck @libshipwreck on x
    Who (except for the people who were mocked as technophobic Luddites for scoffing at NFTs) could have seen this coming?!?!?!?! https://www.bloomberg.com/...
  • @firstadopter Tae Kim on x
    Going to reiterate. Nearly all NFTs are completely worthless https://www.bloomberg.com/...