NFTs trading value drops 93.7% in six months
The trading volume of Non-Fungible Tokens has dropped from $16.57 billion in January 2022 to $1.04 billion as of July 22.
The trading volume of Non-Fungible Tokens (NFT, the acronym in English) fell from US$ 16.57 billion in January 2022 to US$ 1.04 billion as of July 22.
This result appears in a search carried out by the website Theblock.com on the flow of NFT transactions on the main buying and selling platforms.
The effect of the fall in the prices of the crypto assets has an important weight on the results of this research.
In addition, even with this contraction, the value of transactions in the last month continues to be higher than in the same period in 2021.
Last year, the purchase and sale of active digital linked to collecting and art was just $144 million.
NFT’s fall was higher than that of cryptocurrencies
The drop in the trading flow of NFTs was higher than the cryptocurrencies, that lost “only” 51% between 2021 and 2022.
Furthermore, if the cryptocurrencies peaked in November 2021 NFTs peaked in January.
Therefore, many analysts began to consider NFTs as “different” from cryptocurrencies, having an autonomous space of valorization.
According to some analysts, in addition to the fall in the prices of crypto assets, also weighed a search for a quick gain on the part of investors.
The use function of NFTs – that is, automatic contracts that contain unique and unalterable information that identifies a digital or physical object as a work of art, guaranteeing the rights of property – ended up in the background.
The problem with considering NFTs as mere investment assets is that there is currently no consistent and efficient secondary market where these assets can be marketed.
And now, because of the macroeconomic situation and the high interest rates in USA, the NFTs came out of the “trending topics” of the social networks of investors. And volumes, along with prices, plummeted.
NFTs didn’t die
However, care must be taken in declaring the “death” of NFTs.
That technology it is still in its infancy, and like all innovations, moments of difficulty are inevitable.
On the contrary, this “selection” of the most resilient NFTs could even be useful for the industry.
Smart contracts – which, technically, are the NFTs – with the passage of time, they became more advanced and with greater applications. This will contribute to the evolution of the entire sector.