- The excitement around NFTs has calmed down a bit, citing a major fall in interest.
- Active NFT wallets dropped by a whopping 40% and daily sales fell by 60%.
- Reasons for the decline could be the crypto market crash and loss of novelty.
Feels like all the energy surrounding Non-fungible tokens (NFT) since earlier this year has calmed down a bit. In fact, many market metrics are indicating a major fall in interest.
Recently, the NFT market faced a dramatic drop in activity since May. Most notably, the number of active NFT wallets dropped by a whopping 40% and daily sales fell by 60%, as per NonFungible. This doesn’t sound like great news for the digital asset.
Although extremely popular recently, NFTs’ downfall seems to be brought on by two things; the crypto market decline and a loss of novelty.
Activity for NFT trade peaked in April and May however now its decline emulates that of early 2018. Still, running contenders include CryptoPunks, Sorare, and Meebits. Notwithstanding the loss in market activity, these three remain the most popular NFTs in the market. In just the past week, the three pulled in roughly $5 million.
Is the NFT trend fading?
Non-fungible tokens broke through the market about the same time as DeFi and the general crypto boom. However, people’s interest in both these areas cannot be assumed similar. For instance, during the market crash of May, crypto suffered hugely and amounted to great losses. NFTs on the other hand, did fairly well, showing a lot of activity.
Now, as the market recovers, NFTs don’t seem to be benefitting from ‘crypto bulls’.
Perhaps this is just a temporary setback in NFTs’ path to revolutionize collectorship. This seems likely when taking into account the major entities still racing to get a slice of the NFT pie. Other than this, further innovations may recapture the market’s interest. This is apparent in sports teams’ unique use of NFTs as tickets, merchandise, and exclusive features.