Is the market collapsing?  NFT sales fell more than 90%

Is the market collapsing? NFT sales fell more than 90%

Average daily NFT sales fell below 19,000 this week. According to a survey on the NonFungible Data page, the results are relevant 92% fall Compared to the peak of 225,000 sales recorded in September last year.

The number of active wallets in the digital token market also follows the same trend, Fall 88% Last week – from 119,000 to 14,000 in November 2021. The results warn of what the future holds for non-fungible tokens.

Fame

NFT sales fell more than 90%
According to Google Trends data, searches for the term NFT have also dropped by 80%. Image: World Wide / Shutterstock

For some experts, one factor that may explain the decline in interest rates is the rise in interest rates, which hinders investment in many risky assets, such as NFTs and cryptocurrencies.

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

Accordingly The Wall Street JournalTo make matters worse, the Federal Reserve, the US Federal Reserve, is set to raise interest rates in the US in the coming days, with further adjustments to be made in June.

Devaluation

Many people who invest in NFT are also looking for the other side of the coin. The value of your investment is lower than what you bought today.

A practical example is the first tweet posted on Twitter, sold as a non-fungible token in March 2021 to Blockchain CEO Sina Estavi for 2.9 million.

In early 2022, Estavi decided to auction off the piece. However, the executive had to give up the idea as no bid of more than US $ 14,000 was received.

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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. According to data on the Google Trends platform, the decline has been 80% since it peaked in January.

According to analysts, the imbalance between supply and demand is also affecting the token market. Currently, there are five NFTs available per buyer, according to data from the analysis firm Channelialis.

At the end of April, 9.2 million NFTs were sold, with 1.8 million people buying, the survey revealed.

The NFT department exploded last year

NFTs got a fever in 2021 when musicians, artists, celebrities and companies decided to put a big bet on this idea. For example, artist Beeple sold NFT for less than $ 69 million. Other brands like Adidas and Nike also created and sold their own digital tokens.

Finally, for Zach Friedman, co-founder and managing director of Cryptocurrency Exchange Secure Digital Markets, what still sets NFTs apart is the benefits or utilities associated with digital assets.

American comic book filmmaker, actor and screenwriter Kevin Smith, for example, plans to sell NFTs tied to his upcoming film (“Kilroy was here”). Only those who have tokens will have access to this feature.

Source: The Wall Street Journal

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