The months-long slide in the crypto market has brought down the cryptocurrency behind one of the most successful NFT projects. Flow, the coin on the blockchain of the same name, fell to a record low of 84 cents today. In April last year, the cryptocurrency was still at 42 US dollars. The price drop is indicative of the crisis on the NFT market. The company behind the blockchain, Dapper Labs, one of the biggest players in the sports NFT space, has already cut jobs.
Trading volume collapses
In early 2021, Dapper Labs was among the emerging companies in the emerging NFT hype. The company, which is also responsible for the cryptokitties, struck a chord with the NBA top shot series, tokenized basketball moments. Sales soared, numerous investors including Will Smith and Michael Jordan were brought on board, the flow token rose from one record high to the next. Little is left of those times today.
The trading volume of digital basketball movies is up almost 40 percent in the last 30 days broken into. The football offshoot “NFL All Day” even by 50 percent. Just two million US dollars trading volume tipped the scales for the NBA NFTs in November – the worst month in history.
NFT market in crisis mode
Dapper Labs caught the crisis in the crypto market. In November, the company laid off 22 percent of its workforce. Managing Director Roham Gharegozlou cited “today’s macroeconomic environment” as the reason. Employees were fired by email – that’s the style of the new economy.
Flow token crash reflects tension at Dapper Labs. The demand for non-fungible tokens has decreased significantly in recent months. In December, NFT trading volume could fall below $200 million for the first time this year. The flow token’s ground search may continue.