More

    NFT sales crash 92%, but is this the full story?

    The news of an NFT crash came this week, with sales dropping 92 percent, according to some data. The meteoric ascent of non-fungible tokens in the last year, fueled no doubt by lockdowns, sparked a frenzy of interest in this new art form, but it appears that the party is over. Is that the case? What exactly is the backstory to this recent development?

    According to crypto statistics site NonFungible, transaction volume fell by 47 percent in the first quarter of this year compared to the previous quarter. Sorry to bore you with numbers, but this is ultimately a sign that reality is settling in on technology and a market that has been dominated by hype and underutilized for quite some time.

    However, the notion that NFTs are no longer relevant is likely exaggerated. The Moonbirds NFT project, for example, witnessed a $500 million rise in trading volume month over month, while the Solana blockchain had a 91 percent increase in NFT trading volume, totaling approximately $300 million.

    NFT sales crash – is it true?

    The Ethereum blockchain was recently crashed by the introduction of Yuga Labs’ new Otherdeeds NFT, a virtual land sale for a planned video game, which was in such strong demand, despite the floor price of $5,500 / £5,000. The allure of ‘blue chip’ NFT brands remains strong, and consumers are willing to spend a lot of money to obtain a piece of what’s next.

    However, overall NFT trading is slowing at a macro level, which can’t come soon enough for many artists invested in the space – read our interview with VFX supervisor Bilali Mack, who believes NFTs need a reset so that new uses, experimentation, and entrepreneurial ideas can bring better value and true democratization to this digital technology.

    Some NFTs are on the verge of bursting.

    Many NFTs are on the verge of bursting, comparable to the dot.com bubble in the late 1990s. NFTs are at the end of one curve and the beginning of another, and this new boom could be the one that propels the technology forward.

    NFTs’ new future should see the technology break free from bitcoin’s ups and downs, allowing more people who are accustomed to utilizing fiat currency to participate. We should see increased usefulness in NFTs—ones that have real-world applications as well as aesthetic quality (see how NFT tips can help you learn more)—and a shift away from Ethereum to more stable, environmentally friendly, and economically viable blockchains like Solana, Wax, and Flow.

    NFT sales crash might just be true

    Some in the NFT community disagree with the notion of a decline. Tom Schmidt, a bitcoin investor, downplayed the nonfungible data that prompted the present controversy. He cites more precise on-chain statistics from Dune Analytics, which reveals NFT transactions have barely decreased since the new year’s highs in January.

    A crash is predicted, but it might happen now or in a year, and this isn’t the first time we’ve wondered if NFTs are dead. But what happens next, especially for artists and producers, might really define what NFTs are and how they’re used. The enthusiasm appears to be fading, which many in the NFT industry should appreciate because what comes next might be quite fascinating.

    Stay in the Loop

    Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    You might also like...