The hype of NFT’s we’ve seen so far was extraordinary, outwardly and we felt like we are experiencing a new change to the world. However, whether we agree on the fact that we were expecting to see the NFT market go down or not, the truth is that the Sales of NFTs have collapsed by 92% between September 2021 to April 2022.
Not good for many investors, not good for OG Genesis NFT Holders, but some of the blue chip NFTs are still holding on tight.
According to data collected by the Wall Street Journal, NFT sales have decreased from a daily average of 225,000 to just 19,000 and is continuing to fall.
Even the data from Google Trends, shows a massive decline in search interest for the term “NFT” which decline from reaching a peak of 89 on January and dropping down to just below 25.
According to Nonfungible, the decline in transaction volume seen by the crypto data site is a 47 percent decrease in activity during the first quarter of 2019 compared to the previous three months.
Even crazy is the fact that, people who had invested in NFT a year ago are seeing the value of their NFT drop significantly. Last year, the first-ever tweet from co-founder Jack Dorsey was sold for $2.9 million in March, but when it went to auction, the bids didn’t rise above $14,000. The enthusiasm is slipping away.
This week, Tesla CEO Elon Musk, a prominent cryptocurrency supporter, appeared to dismiss NFTs as well. After he changed his Twitter profile picture to a collage of the popular Bored Ape Yacht Club NFT series, Elon Musk tweeted “I don’t know… it appears to be fungible.”
I dunno … seems kinda fungible— Elon Musk (@elonmusk) May 4, 2022
Despite the fact that NFT trading is down, certain projects, such as Moonbirds are still doing pretty well it seems.
The notion that NFTs are “over” is, however, a myth. The Moonbirds NFT project, for example, attracted $500 million in trading volume since its inception, whereas the Solana blockchain saw 91 percent month-on-month growth, with nearly $300 million more in NFT trade.
Overall, NFT trading is slowing at the macro level, and many investors in the NFT sector are losing money.
Some NFTs are on the seeing a bubble-blasting catastrophe comparable to the dot.com bust in the late 1990s.
In the end, regardless of all this, NFTs still have a future in the gaming sector, as other industry veterans such as Reggie Fils-Aimé consider themselves believers in NFT and the future potential of it. Pokemon Go’s developer Niantic is also “looking at” NFTs for its new game Peridot.