Is this the end of NFTs?
Bubble Burst
Bad month to be a nonfungible token. According to Bloomberg, NFT trading volumes are down a catastrophic 97 percent from the record highs seen back in January — a sign that the market may be experiencing something less like a winter and more like a full-blown ice age.
That being said, the remaining sales aren’t nothing. Per Bloomberg, September sales numbers should ring in right around $466 million. That’s something, but it’s a far cry from monthly sales totaling $19 billion, as were seen at the beginning of the year.
Macroeconomic Conditions
Diminishing NFT trading volumes have been reflected elsewhere in the market. OpenSea, the world’s top NFT trading platform by trading volume, fired 20 percent of its workforce back in July, while the sad NFT spiral is situated against the backdrop that is the broader industry crash.
On that note, it’s worth noting that there are some dismal macroeconomic conditions to consider, as pretty much every NFT-slash-crypto-CEO has noted during the industry’s mass layoffs. Most industries are having a difficult time right now, as are everyday folks struggling with the economy. The fading hype around digital assets — due in large part to a growing lack of distrust in the industry, following the crash — combined with a generally uncertain financial future is likely making it a lot harder to convince consumers that spending anything from a few hundred to a few million is worth it for a JPEG image, especially in an arena rife with fraud, scams, and just downright horrible behavior.
Uncertain Future
As many experts have echoed, it’s unlikely that we’re seeing the absolute end of NFTs. But as the immensely overblown clout that the industry was built on continues to dwindle, prices — and sales volumes — will likely continue to reflect that.
In the meantime, there are a number of ways for sellers to get creative. Seriously, can you imagine where the market would be if all NFTs came with side of free weed? Something to think about.
READ MORE: NFT Trading Volumes Collapse 97% From January Peak [Bloomberg]
More on NFTs: Sleazy Project Sold NFTs of Porn Stars, But Never Got Their Permission