NFTs brought along with them a vast craze among enthusiasts. With its advent, almost every investor was looking forward to investing and getting hold of some unique NFTs. By buying an NFT, you can access the ownership of some unique virtual art pieces. It can be digital art, a video game, and similar others. Read more about Mastering the Ethereum and its Blockchain by clicking here. Blockchain technology which is a decentralized ledger maintains the records. But, at present, the sales of NFTs are crashing and reaching all-time low ranges! Let’s dive into this blog to find out more about the loss of NFT sales.
The Details About The Loss Of NFT Sales
In June last year, the total sale of NFTs was around 1 billion USD, as per Chainalysis’s report. And according to this firm, this amount indicates that the NFT market is performing at its worst. Because in January of the same year, the sales were at their top level of 12.6 billion USD!
The prominent economist of Chainalysis says that this downfall has close links with the slow crash of the Cryptocurrency industry. He further adds that amidst such crises, the impacted markets face consolidation.
And, in the case of NFTs, there may be more pullback. There can be a reduction in the new collections and kinds of releases that become prominent.
How Is the Cryptocurrency Industry Affecting The NFTs?
The total market worth of Cryptocurrencies is somewhere around 1 trillion USD. This amount was about 3 trillion USD in 2021, showing a huge decline in value.
Like Cryptocurrencies, NFTs depend on Blockchain technology as well. It helps this market to maintain all the records and aids them in the trading process. Most of these are based on the Ethereum network, one of the most successful Crypto.
During its peak periods, the NFT market gathered around 2.9 million USD for a single token for Jack Dorsey, co-founder of Twitter’s first tweet! Besides that, a virtual collage piece by Beeple, a visual artist, got around 69 million USD alone!
But, the crash in the Crypto industry from different aspects also dampened the market of NFTs! Investors are becoming more aware of the huge risk involved and its potential loss. Considering all these factors, investors are losing their appetite for risky assets.
The Condition Of NFTs At Present
NFTs are showing their weakest performance in the last few months. There are different aspects like economic slowdown, scams, hangovers of the pandemic, and many others. All these are adding to the crash in the NFT sale!
Even you may find it challenging to make an investment decision in recent times looking at the market’s condition. Last year’s November saw a slowdown in five major NFT marketplaces! This month’s total sales for all these five marketplaces declined by -20%, which may shock you!
What Do Experts Say On This Downfall?
The CEO and Co-founder of Balthazar, John Stefanidis, says that we can understand why the NFT sales have declined. There are different aspects of the market responsible for this situation. But, on the other side, we can see that this technology has more releases of applications.
Because of the economic downturn, and collapse of the Crypto giants like the FTX or Terra Luna, people are afraid to invest in massive amounts. Investors are investing with proper caution, though they lost their trust in the market.
The CEO also says that the applications of this fresh technology are rising despite the fall in sales. Someone is getting their new house with NFT or gaining some other assets.
So next time you buy an NFT, it will not be just a digital piece. Instead, you will have a bigger asset than you can imagine! Apart from that, the companies developing this technology create their tokens. You can buy these tokens as well and use them more than ever.
Conclusion: Loss Of NFT Sales
The NFT market is weaker than before, with much lesser sales. But the applications of these tokens are vast and exciting too! You can expect much more than just a digital piece while buying an NFT in the upcoming years. And, if you want to invest or trade cryptos, check out Bitcoin smart, the official trading website!