Flow has dropped 26% over the past 30 days, correlating with declining NFT activity on the platform and the recent layoffs at Dapper Labs.
Early in 2021, Flow gained to popularity as NBA Top Shot led the charge for NFTs to join the mainstream. But as a result of a large fall in trading activity on the platform and recent layoffs by the blockchain’s inventor Dapper Labs, the native coin has now reached a new all-time low.
Flow, the network’s namesake native cryptocurrency, reached a fresh low of $0.89 this morning, according to data compiled by CoinGecko. It has marginally recovered to beyond $0.90, but Flow is still down 6% on the day, about 14% over the previous week, and approximately 26% over the past 30 days.
That’s a big difference from Bitcoin and Ethereum, the two biggest cryptocurrencies by market cap, which have both gone up in the last few weeks. In the last month, Bitcoin has gone up almost 5%, while Ethereum has gone up about 3%.
Overall, the price of Flow has dropped 98% since April 2021, when it was worth more than $42 per coin. This was right when the initial NBA Top Shot hype cycle was starting to die down. From their all-time highs, Bitcoin and Ethereum are both down about 75%.
The current acceleration in Flow’s collapse coincides with a decline in NFT trading volume on the network, as seen by steep month-over-month drops in network trading and a decline in activity on Dapper’s main platforms NBA Top Shot and NFL All Day.
According to data from DappRadar, the volume of NFT trading on the Flow blockchain dropped from nearly $39 million in September to about $15.6 million in October and then again to about $7.7 million in November. So far in December, trade has been below what it was last month.
According to CryptoSlam, NBA Top Shot had its worst month in over two years in November, with market transactions totaling less than $2.1 million. This is a decrease from October’s $2.7 million, September’s $4.7 million, and August’s $7 million. The number of transactions and unique buyers has also decreased.
NBA Top Shot had its heyday in early 2021, when NFTs gained popularity outside of the crypto community. Top Shot had $224 million in trading activity in February 2021 and nearly as much the following month, but prices declined as the NFT buzz went down.
NFL All Day, Flow’s sports NFT platform, has seen comparable decreases. It hit a record $14.3 million in September, then $6.7 million in October and $3.6 million in November. According to CryptoSlam, All Day has only made $769k in December trading.
Dapper Labs, the original creator of Flow and a major contributor to the decentralized network, has conducted extensive layoffs in response to the deteriorating NFT market and the so-called crypto winter. The company reported a 22% decrease in employment early in November, although the number of affected employees was not disclosed.
Although Flow’s NFT trading has declined more sharply than other major networks like Ethereum and Solana during the recent months, the NFT market as a whole has lost substantial impetus since the beginning of the year. According to data from DappRadar, the market generated $5.36 billion of organic NFT trading volume in January, but only $643 million in November.
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