Market crash?  NFT sales plummet more than 90%

Market crash? NFT sales plummet more than 90%

Average daily NFT sales dropped below 19,000 this week.According to a survey of the NonFungible data page, the results correspond to down 92% That compares with a peak of 225,000 daily sales set in September last year.

The number of active wallets in the digital token market follows the same trend, plummeted 88% Last week – up from 119,000 in November 2021 to 14,000. The results sparked warnings about the future of non-fungible tokens.

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NFT sales plummet more than 90%
Searches for the term NFT also dropped by 80%, according to Google Trends data. Image: Globe/Shutterstock

For some experts, one of the factors that helps explain this relative decline is the rise in interest rates, which discourage investment in several riskier assets, such as NFTs themselves, as well as cryptocurrencies.

NFT: Learn what it is and learn how to create, buy and sell

according to Wall Street JournalTo make matters worse, the U.S. central bank, the Federal Reserve, plans to raise U.S. interest rates in the coming days, with further adjustments planned in June.

depreciate

Many people who have funded NFTs are also discovering the other side of the coin. Your investment today is worth far less than it was when you bought it.

A practical example is the first tweet on Twitter, which was sold as a non-fungible token to Sina Estavi, the CEO of a blockchain company, for $2.9 million in March 2021 .

In early 2022, Estavi decided to auction the piece. However, after not receiving any bids over $14,000, the executive was forced to drop the idea.

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lack of interest

The level of interest in NFTs can also be assessed by the number of Google searches for the term. After peaking in January, the decline has reached 80%, according to Google Trends.

The supply-demand imbalance is also hurting the token market, analysts said. According to analytics firm Chainalysis, there are currently five NFTs available to every buyer.

According to the survey, as of the end of April, 9.2 million NFTs had been sold and 1.8 million people had purchased them.

The NFT segment exploded last year

NFTs became a craze in 2021 when musicians, artists, celebrities and companies decided to make big bets on the idea. For example, artist Beeple sold NFTs for no less than $69 million. Other brands like Adidas and Nike have also minted and sold their own digital tokens.

In the end, for Zach Friedman, co-founder and director of operations at crypto exchange Secure Digital Markets, what still makes NFTs stand out is the advantages or utility associated with digital assets.

For example, American comic film producer, actor and screenwriter Kevin Smith plans to sell NFTs related to his upcoming film (“Kilroy is here”). Only the person with the token can access the feature.

resource: Wall Street Journal

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