The popularity and global sales of cryptocurrencies and blockchain technology in the last two years have opened up a slew of opportunities for investors looking to cash in on the new industry’s promise of profit. The NFT Marketplace was one such site where investors and innovators went in droves, propelling the industry to new heights in a short period of time.
The NFT industry, on the other hand, appears to be losing steam or at the very least correcting itself. Many blue-chip NFT investors, who are thought to have invested in safer digital assets, have been driven to hunt for new possibilities and ways to use their holdings as a result of this.
NFT global sales peak point
According to CryptoSlam, an NFT data aggregator, global NFT sales volume reached $4.6 billion in January. By the end of March, though, it had dropped by nearly half, to $2.4 billion. In the midst of the crisis, a number of NFT owners have decided to sell their digital assets. However, not everyone has given up hope in the industry. Some people still believe in NFT and are holding on to their investments, such as Bored Ape Yacht Club, which increased by 199.6%, according to CyptoSlam data.
This indicates that non-traditional lending has increased. Owners of NFTs tend to have a desire to use their digital assets as a source of liquidity. Domain experts suggest they put that money to better use by purchasing other assets.
It’s natural to lend NFTs to get liquidity and enhance capital efficiency. Arcade NFT, for example, specializes in allowing owners to acquire loans by pledging their digital collectibles as security rather than supplying another commodity such as a house or car.
According to experts, the fall in NFT sales volume is largely due to consumers being more aware of what they can do with their non-fungible tokens. However, numerous NFTs purchased at exorbitantly high rates during the market boom are struggling to resale. NFTs are a type of digital asset that can’t be copied or duplicated in any way. A digital record of a picture, video or audio file, or text can be used.