NFT Hype Cools Off! Is the Non-Fungible Token Market Declining? PlatoBlockchain Data Intelligence. Vertical Search. Ai.

NFT Hype Cools Off! Is the Non-Fungible Token Market Declining?

Time Stamp: April 16, 2022 4:30 AM

NFT-Hype-Cools-Off.

The usage of blockchain technology seems to always be undergoing a transformation, with a huge increase in the number of implementations and applications being produced at an alarming rate. One of these many applications is the use of NFTs, which are digital assets that are verifiable through the use of blockchain technology. NFT is an abbreviation for a non-fungible token, which refers to a one-of-a-kind digital asset that cannot be traded for any other NFT. As a result, every NFT is a unique piece of artwork.  NFTs are exchanged from one person to another via the use of blockchain technology, which produces a digital footprint from a seller to buyer that serves as proof of the transaction’s validity. NFTs, unlike physical art, cannot be damaged, lost, or destroyed since they are recorded on a blockchain. The majority of NFTs are built on Ethereum’s blockchain, however, there are others such as Cardano, Solana, and Binance Smart Chain. NFTs are well-known in the crypto community and the art world. Although NFTs have existed since 2014, they gained significant popularity last year. Everything began with the $69.3 million sales of a work of digital art titled “Everyday: The First 5,000 Days” by digital artist Mike Winkelmann, which made him one of the most expensive artists in the world.  NFT sales totaled around $2 billion in the first quarter of 2021 alone. According to a report from nonfungible.com, a website that tracks the sales history of the NFT market, NFT trading reached a total volume of more than $23 billion last year, a rise of more than 21,000 percent over the previous year’s total volume of $100,000. NFT Hype Fading Off Despite the fact that the NFT buzz was practically unprecedented in the history of the digital art world, it seems that the euphoria is now fading, and the trading volume has returned to levels similar to those before the hype began. The volume of trading is an important statistic for assessing the strength of the NFT market, and it is currently at its lowest since June of last year. The graph below from Google Trends shows that the number of NFT mentions in searches has also been on a decline for a while. However, although the number of businesses working on NFTs continues to expand and usage continues to rise, the weekly and monthly market sales have started declining. Furthermore, sales on prominent NFT markets like OpenSea and Binance’s NFT marketplace are becoming less active. According to nonfungible.com, the weekly market volume of NFT transactions has dropped to roughly $176 million from its $924 million value in the last week of January. The pictures below show the decline in monthly NFTs sold on OpenSea, the biggest NFT marketplace. Source: Dune Analytics Is the Loss of Interest Temporary? Although recent international events and the decline in the crypto market may be contributing to the drop in attention paid to NFTs, it is possible that the hype is just fading down after a period of delight and a general cooling in enthusiasm. In addition, it is possible that many who jumped into the hype to earn quick money are now starting to have a more realistic view of the sector. However, since the NFT market is difficult to predict, it is possible that this decline in interest will be short-lived, given that the use of NFTs is still increasing and a large number of individuals and businesses are still expressing strong interest.

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The post NFT Hype Cools Off! Is the Non-Fungible Token Market Declining? appeared first on Cryptoknowmics-Crypto News and Media Platform.

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