Is NFT coming to an end? Average daily sales have fallen by more than 90% since last September
A recently published article states thatNFTAverage daily sales have plummeted since last November, investor interest has waned and the NFT market is collapsing.
According toNonFungibleThe number of active wallets in the NFT market fell 88% to about 14,000 last week from a high of 119,000 in November, according to data from the NFT market, which saw average daily sales fall to 19,000 this week, down 92% from a peak of about 225,000 last September.
Rising interest rates have crushed high-risk bets across the financial markets - NFT is one of the most speculative products.
Since last November, the technology-dominated Nasdaq Composite Index has fallen 23%.BitcoinDown 43%. The Federal Reserve is scheduled to raise interest rates this week and next month. As the central bank's accommodative monetary policy winds down, investors are turning to more defensive stocks, such as essential consumer goods.
Many NFT owners are finding that the value of their investment has shrunk significantly from what it was when they purchased it.
In March 2021, the NFT of the first tweet posted by Twitter co-founder Jack Dorsey was sold to Sina Estavi, CEO of Malaysian blockchain company Bridge Oracle, for $2.9 million.
Earlier this year, Estavi put the NFT up for auction and did not receive any bids over $14,000, so he did not accept.
Estavi said the failed auction is not an indication that the market is deteriorating, but rather a normal fluctuation that can occur in any market. The NFT market is still evolving and it is impossible to predict what will happen in a few years, he said.
I will never regret buying it, because this NFT is my capital", he says.
Another NFT buyer purchased Snoop Dog's NFT, titled "Doggy #4292," for about $32,000 in ETH in early April. The NFT, a photo of a green-skinned astronaut standing on the Hollywood Walk of Fame, is now up for auction with an asking price of $25.5 million. The current top bid is 0.0743 ETH - about $210.
This lack of interest is not uncommon. According to Google Trends, interest in NFT, as measured by searches for the term, peaked in January and has since declined by about 80%.
The supply-demand imbalance is also hurting the NFT market. There are about five NFTs for every buyer, according to analyst firm Chainalysis, which said that 9.2 million NFTs had been sold and 1.8 million people had bought them by the end of April.
The largest U.S. cryptocurrency exchange is still betting on NFT.CoinbaseThe beta version of the NFT marketplace was launched last month with 4 million registrations. It will allow users to connect their existing wallets to the site and buy and sell NFTs, initially without transaction fees, and create NFTs through the site.
NFTs soar as part of the zeitgeist in 2021 as musicians, artists, celebrities and companies join the trend. Artist Beeple sold NFTs associated with his work for $69 million. adidas and Nike minted and sold NFTs associated with their sneakers.
New York artist Jeff Koons is selling NFTs of a series of sculptures he intends to send to the moon later this year for $2 million each.
Earlier this month, NFT art platform TRLab said Chinese artist Cai Guoqiang, internationally known for his work with gunpowder, sold out of his 7,000-piece NFT series in just one minute, allowing buyers to create their own digital fireworks displays.
What makes NFTs stand out now are some of the perks or useful features they come with, says Zach Friedman, co-founder and COO of crypto brokerage firm Secure Digital Markets.
Director Kevin Smith plans to sell 5,555 NFTs associated with the upcoming film "Killroy Was Here," which only those who own NFTs will be able to watch.
A band called The Crystal Method is auctioning off NFTs associated with a new song that includes backstage passes to a concert and the perk of dinner with the band.
Friedman says, "The continued development of NFT will definitely be utility-focused."
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