Business boom? NFT sales fall below 90%

Average daily NFT sales have fallen below 19,000 this week. According to a study of NonFungible data pages, the results are relative 92% loss compared to the peak of 225 thousand sales per day recorded in September last year.

The number of active wallets in the digital token market also follows, lost 88% Last week – from 119,000 in November 2021 to 14,000. The results serve as a reminder of what the future holds for non-fungible tokens.

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NFT sales fall below 90%
Search for the word NFT has also dropped by 80%, according to Google Trends data. Image: International / Shutterstock

For some experts, one of the reasons that helps explain this decline is the rise in interest rates, which affects investments in many risks, such as NFTs themselves and also cryptocurrencies.

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

as 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 the US Federal Reserve. Six months.

Devaluation

Many who have invested in NFTs also see the other side of the coin. Your investment is less valuable today than when you bought them.

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

In early 2022, Estavi decided to auction pieces. However, the boss was forced to abandon the plan after failing to receive a bid of more than US $ 14,000.

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Not satisfied

The level of interest in NFTs can also be measured by the number of Google searches over time. After reaching its highest point in January, the decline is 80% since then, according to data from the Google Trends platform.

This mismatch between supplies and needs, according to analysts, could also hurt the token market. According to data from the Chainalysis testing company, there are currently five NFTs available per customer.

At the end of April, 9.2 million NFTs were sold, which was purchased by 1.8 million people, the research shows.

The NFT segment exploded last year

NFTs got a fever in 2021 when musicians, artists, performers and companies decided to bet big on the concept. Artist Beeple, for example, sold NFT for no less than $ 69 million. Other brands such as Adidas and Nike also minted and sold their own tokens.

Finally, for Zach Friedman, co-founder and chief marketing officer of cryptocurrency exchange Secure Digital Markets, what still makes NFTs stand out is the quality or the equipment associated with digital assets.

American comic bookmaker, actor, and screenwriter Kevin Smith, for example, plans to sell NFTs tied to his future film (“Killroy is here”). Only those who have the tokens will have access to the feature.

Location: Wall Street Journal

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