According to data from popular website NonFungible, sales of non-fungible tokens (NFTs) have dropped 92% since September of last year, potentially dampening the mood of crypto enthusiasts.
The sale of NFTs fell to a daily average of about 19,000 this week, a 92% drop from a peak of about 225,000 in September, according to data cited by the Wall Street Journal.
According to the report, the number of active wallets in the NFT market fell by 88% last week to around 14,000 from a high of 119,000 in November.
The incredible enthusiasm for NFTs resulted in explosive growth of the niche industry in 2021.
The Collins dictionary selected NFT as the word of the year for 2021. NFT was defined by the Collins dictionary as “the unique digital identifier that records ownership of a digital asset”.
However, with nearly $8 billion traded in the first quarter of 2022, the market cannot be considered to be in a state of collapse.
“We are seeing more of a form of stabilisation, in line with the last quarter of 2021. Conversely, the volume of sales fell by nearly 50 per cent, with a very marked slowdown in the volume of buyers and sellers,” according to NonFungible.
Many NFT owners are now finding that their investments are significantly lower than when they purchased the pieces of art.
Sina Estavi, a crypto entrepreneur, paid $2.9 million for an NFT of then-Twitter CEO Jack Dorsey’s first tweet.
He planned to sell it last month, but to his surprise, he received a top bid of only $6,800.
Estavi had listed the NFT for resale on the OpenSea NFT marketplace, asking $48 million.
Collectibles, sports, entertainment, and the arts are currently represented in the NFT market.
Binance, Dapper Labs, Foundation Labs, Gala Games, Onchain Labs, OpenSea, Theta Labs, Yellowheart, and Yuga Labs, among others, dominate the global NFT market.
WazirX NFT marketplace, Jupiter Meta, Rario, and BeyondLife.club, among others, have entered the niche Indian NFT market.
Cricketers such as Virender Sehwag, Sunil Gavaskar, Zaheer Khan, and Rishabh Pant have joined the world of NFTs, as have Bollywood celebrities such as Amitabh Bachchan, Salman Khan, Rajinikanth, Sunny Leone, and Flora Saini.