NFT's popularity drops by 92%

by   |  VIEW 928

NFT's popularity drops by 92%

Non-fungible tokens, ie NFTs, were obviously only a short-term trend in terms of their application in digital sales. The NFT market peaked in September last year, followed by a sharp decline. The Wall Street Journal processed NonFungible's data and came to the conclusion that the volume of NFT trade has fallen by as much as 92% since its peak last year.

In September, the sales volume was 225 thousand per day, and these days it is at 19 thousand with a further downward trend. The number of active wallets trading also decreased. From the peak of 119 thousand of them in November last year to only 14 thousand active today.

The WSJ attributes the decline in popularity of NFTs to their volatile value. He explains that the value of NFTs is usually purely speculative, and the market apparently at one point estimated that the estimates were inflated.

The crypto entrepreneur lost $ 2.9 million

The best example of the inflated value of NFTs, transmitted by the WSJ, is NFT’s first tweet on Twitter. He was sold by his co-founder Jack Dorsey last year for $ 2.9 million to Sina Estavi, a crypto entrepreneur from Malaysia.

At last month's auction, the same NFT did not receive a bid of more than $ 14,000. Wasted money. Konami made fine money at his first NFT auction An entrepreneur from Malaysia refuses to admit that the market is declining.

He says that this is a normal fluctuation "that can happen in any market" "I will never regret buying the first tweet, it's my capital," Estavi assures himself. However, when something loses 99.6% of its value in one year, we are not sure how much basis there is for optimism.

Similar things are happening in the gaming industry. Ubisoft has not yet given up on its own NFT platform Quartz but has therefore shut down support for the first game in which it has implemented it. The NFTs at Ghost Recon Breakpoint have lost virtually all their value, but Ubisoft is still not giving up, announcing their implementation in other games.