So far, the excitement around NFTs has been amazing, and we have felt as if we are seeing a new transformation in the world.
Whether we agree or disagree that the NFT market was expected to decline, the reality is that NFT sales dropped by 92% between September 2021 and April 2022.
Not terrible for many investors, and not good for OG Genesis NFT holders, but certain blue-chip NFTs are still hanging on.
According to Wall Street Journal statistics, NFT sales have fallen from a daily average of 225,000 to barely 19,000 and are continuing to plummet.
Even Google Trends data reveals a dramatic reduction in search interest for the phrase “NFT,” which peaked at 89 in January and has since dropped to just around 25.
According to Nonfungible, a cryptocurrency statistics website, transaction volume fell by 47 percent in the first quarter of 2019 compared to the previous three months.
Even more bizarre is the fact that those who bought NFT a year ago are seeing the value of their NFT plummet dramatically.
In March of last year, the first-ever tweet from co-founder Jack Dorsey was sold for $2.9 million, but when it went to auction, no offers exceeded $14,000. The excitement is dwindling.
This week, Tesla CEO Elon Musk, a vocal backer of bitcoin, seemed to disparage NFTs as well. Elon Musk wrote, “I don’t know… it appears to be fungible.”.
I dunno … seems kinda fungible
— Elon Musk (@elonmusk) May 4, 2022
Even though the NFT trade is down, it seems that some projects, such as Moonbirds, are still doing well.
However, the concept that NFTs are “over” is fiction. The Moonbirds NFT project has attracted $500 million in trading volume since its inception, while the Solana blockchain has grown by 91 percent month on month, with an additional $300 million in NFT trade.
Overall, NFT trading is slowing on a macro level, and many NFT investors are losing money.
Some NFTs are on the verge of a bubble-bursting disaster akin to the dot.com crisis in the late 1990s.
Ultimately, despite all of this, NFTs have a future in the game business since other industry stalwarts such as Reggie Fils-Aimé believe in NFTs and their future potential.
Niantic, the creators of Pokemon Go, is also “considering” NFTs for their new game, Peridot.”
However, interest in NFTs has recently declined significantly, and Metaverse games are not faring well either. The future of crypto and NFTs does not appear promising.