Flow Blockchain Records Sharp Dip in Transaction Volumes
While several blockchains profit from their inherent association with NFTs, a collapse in the NFT industry would often have a negative effect on them as well. This is precisely what is occurring with Flow, the famous blockchain powering various NFT initiatives including NBA TopShot and other initiatives under the banner of Dapper Labs.
In the past 30 days, Flow’s trading volume and the price of its in-house $FLOW token have fallen precipitously, coinciding with difficult times for Dapper Labs.
Dapper Labs is the mastermind behind a number of sports-related NFT applications built on the Flow blockchain. In November 2022, Dapper Labs was forced to make the difficult choice to lay off 22% of its personnel as a result of the prolonged cryptocurrency winter.
Since then, the Flow blockchain has suffered the impact, with the price of its native crypto token plummeting around 26% in November to a new record low. Moreover, Flow is not the sole blockchain seeing a downturn, as both Bitcoin and Ethereum have fallen in value over the past few months. If the cryptocurrency winter persists and NFT ventures continue to struggle, their underpinning blockchains will also be impacted.