Nonfungible tokens (NFTs) dominated crypto and mainstream media headlines all throughout 2022 equally investors who held CryptoPunks and other projects minted prior to 2022 were finally rewarded for their patience. Meanwhile, newer projects similar the Bored Ape Yacht Club and Fine art Blocks Curated saw some of their rarer pieces sell for millions of dollars.

Despite the million-dollar sales for select 1-of-a-kind NFTs and the record-breaking sell volumes on marketplaces like OpenSea, information shows that a majority of the lower-priced NFTs and bottom-known projects in the market do not accrue value and this means that the sector is rather illiquid. Using data from OpenSea, a recent study from Bloomberg institute that 73.1% of NFT assets had only one transaction in the past xc days.

The number of transactions for assets on OpenSea. Source: Bloomberg

The data is concerning, given that investors looking to purchase NFTs on average pay well above $100 to mint a new NFT and comprehend the gas needed to transfer the nugget.

In comments to Bloomberg, Gauthier Zuppinger, the COO of Nonfungible, said that "maybe 90% of collections minted today are totally useless and meaningless."

Regarding 'successful' NFT investing, Zuppinger:

"90-nine pct is most beingness in the right circle, having the right data at the right fourth dimension. In the NFT space, you alive with this constant frustration that you have missed a adventure to make $one billion."

Related: Sorare scores $680M funding led by SoftBank to grow its NFT sport portfolio

'The NFT marketplace has died'

Farther show that the NFT sector has cooled off significantly from its August highs can be found in the number of sales being transacted on marketplaces.

Number of NFT sales. Source: Nonfungible

Co-ordinate to data from Nonfungible, the number of daily sales across all NFT marketplaces has declined from a high of 138,109 on Aug. 30 to 42,372 on Sept. 21.

A similar chart pattern is seen across multiple NFT market place metrics including the dollar value of sales completed, agile marketplace wallets, primary market sales, secondary market sales, unique buyers and unique sellers.

These market place developments caught the attention of podcast host and Twitter user Dennis Porter, who thinks the latest data coming out of the NFT space suggests that "the NFT market place has died."

For the activity that is still occurring in the market, "the almost actively traded 3% of collections deemed for 97% of all dollar book," co-ordinate to Bloomberg, suggesting that the NFT market is behaving a lot like the wider altcoin market where a minor percent of the tokens receive a majority of the trading volume.

Overall, these developments advise that the virtually recent bull cycle for the NFT sector could be coming to an cease and that it could take some time before the liquidity in the NFT marketplace sees a meaningful increase, particularly with the recent downturn in the wider market.

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