The Non-fungible Token (NFT) ecosystem appears to have entered a full-fledged bear run as a result of the chaotic economic climate that is currently affecting the morale of the international cryptocurrency community.

Data from the NFT price floor shows that the average one-month floor prices have dipped by 50% from 40 back in April to a little over 20 as it currently stands. As a result, transaction volumes have also reduced significantly in the space.

The recent downtrend in NFT prices is a combined product of the United States Federal Reserve increase in interest rates, Terra’s LUNA and UST platforms collapse, and traders finally realize that the entire ecosystem could be in a bear market as it looks.

NFTs are still considered the Wild West of cryptocurrency but many investors are learning that everyone’s standards for morals and ethics are different. A good example of this is when proclaimed blue-chip NFT Azuki took a deep price plunge when one of its founders, Zagabond openly admitted to their dark past plagued with rugging the Cryptopunks and Tendies community.

As Azuki’s floor price dropped precariously because of the news, certain NFT influencers still jumped in and swept the floors in what they regarded as a potential future opportunity in a bear market.

Although things aren’t as bad as they were back in 2018, the NFT market isn’t as seasoned or tested as the other cryptocurrency markets. This has made market observers skeptical about a potential future recovery from the current financial debacle.

Some investors however aren’t fazed by the state of the floor price dips and are already committing funds and assets to acquire digital collectibles, strapping up for potential profits and ways to survive the current market malaise.

Featured image source: Coingape