Cryptocurrencies related to non-fungible tokens (NFT) and the metaverse underperformed over the past week as sentiment about the NFT market remained sour.
The Flow network’s FLOW token, which can be used to build NFTs and decentralized applications (dapps) such as games on the Web3 platform, slumped 20% during the past seven days. FLOW’s decline was the second largest during that period among 52 cryptocurrencies with a market cap over $1 billion, according to crypto data and analysis firm Messari.
The general crypto market has stalled amid recent investor concerns about inflation, the economy and the pace of U.S. Federal Reserve interest rate hikes. But NFT- and metaverse-related token declines reflect price and profit declines for NFTs that have occurred in recent months.
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