Reports Suggest NFTs Might Be On a Decline

According to recent indicators, the NFT space might be in steady decline, unlike earlier predictions of skyrocketing growth. 

Trading volumes on NFT marketplaces are sharply decreasing. This is in contrast to the previous year, which sometimes set almost impossible records. 2021 saw the auction of Beeple’s Everyday: The First 5000 Days project (valued at $69M) to the impressive sales of Bored Apes #3739 and #8585. While there are concerns that the NFT industry might be waning in influence, most market leaders believe this is only a corrective period.

According to CoinMarketCap, the total sales volume for top NFT collections was more than $2 billion a month ago. This is a significant decrease from the previous high of $17.6 billion. At the moment, it is approximately $64.7 million. To back this claim, Google Trends indicates that searches for NFTs have dipped over the last three months.

Additionally, indicators from CryptoSlam also show that the weekly trade volume of NFTs fell from $1.17 billion in January 2022 to $156.09 million in March.

Likewise, two of the most popular NFT collections, BAYC and Mutant Ape Yacht Club, are experiencing lull in sales.  Despite the launch of ApeCoin, per day, the two collections make about 9 and 73 sales respectively. This is a far cry from BAYC’s 682 and MAYC’s 2,288 average daily trades a month ago. 

Thoughts from Market Leaders

The founder of RF Collection, Pablo Rodriguez-Fraile, indicated that the energy and curiosity that existed last year are no longer existent.

I think we achieved something that was not sustainable,” said Pablo.

On the contrary, Modesta Masoit, director of analytics at DappRadar believes the market is currently in a consolidation period. Masoit also noted that the continuing Russia-Ukraine conflict may have hampered NFT sales.

Additionally, Ramkumar Subramanium, CEO of GuardianLink, predicts that investors would need more time to welcome NFTs. The executive compared NFT’s current reception to the earlier days of the internet.  Despite this decline, prominent financial firms such as JPMorgan and HSBC have entered the Metaverse, a virtual NFT-based environment.

Curious NFT Developments

Bored Ape Yacht Club NFT #835 sold for $115 in March after getting purchased for $50,000 last summer. However, since there were other rejected bids closer to the token’s market value, the sale could have been unintentional. 

On a positive note, Mike Tyson recently jumped on the NFT rollercoaster. The retired boxer partnered with Binance to develop a Mystery Box NFT. Auctioned earlier today, the collection covers a variety of artworks featuring Tyson as well popular freebies. It is yet another reminder of NFTs’ mainstream appeal. According to the exchange, the recent celebrity partnership could be a positive for a popular web3 future.  

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Could the NFT industry be on a perpetual decline? Considering the NFT industry’s connection with the metaverse and Web3, the industry could certainly be here a long time.

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