This is not the first time that NFT’s demise has been predicted. Still, non-fungible tokens are still doing well — and the excitement around them isn’t waning all that much.
the ” NFT has been suspended “, according to the Wall Street Journal. For Le Monde, the market for Crypto-art is running out of steam ” ” End of Digital Eldorado » On Culture Geek,” Petni » at the journal du geek, or even « sales decline In La Fnac: On the web, many who offer NFTs for the dead. Is the NFT market really collapsing? Actually, not really.
NFTs become a hot topic in 2021 Non fungible token, or non-exchangeable tokens, are supported by blockchain technology, and this is what allows them to act as certificates of authenticity. inside” Mintent », that is, by recording a computer file on the blockchain it is possible to confirm its origin, owner and rarity.
This is exactly why NFTs have spawned an industry market that broke records in early 2021, with sales reaching tens of millions of dollars. Since then, sales of NFTs have declined, and many are calling them dead. Still, non-tradable tokens are set to remain.
what is going on
But it is true that negative signals accumulate. On April 7, 2022, the owner of the first Tweet NFT put it up for sale. Bought last year for more than $2 million, the NFT is not finding owners today and its price has dropped shockingly: the highest offer on May 9, 2022 was only $24,600.
The Wall Street Journal also explains in its article that NFT sales have decreased significantly: only 19,000 NFTs are sold per day compared to 225,000 in November 2021. the wallets assets (i.e. those actively looking to sell or buy NFTs), also fell: they were no longer 14,000 last week, compared to 119,000 in November, a drop of 88% in just a few months.
The specialized site Non-Fungible, which studies the main trends of the NFT market and which published a study aggregating the main figures for the first quarter of 2022, also noted some declines. Between the last three months of 2021 and the same period in 2022, the number of sales fell by almost half and the number of buyers fell by 30.91%. In addition to the number of sales, it is the total value of transactions that has decreased: in all, between the 4th quarter of 2021 and the 1st quarter of 2022, sales decreased by 4.60%, from 8, 2 billion to more than 7.8 billion
Between the number of coins sold and their declining value, there are plenty of indicators to suggest that the NFT industry is not doing well. However, it is still a long way off.
“Second-hand NFTs” are still popular
First, it’s not all bad news for the industry: the average value of NFTs increased by 80%, showing that the vast majority of tokens continue to appreciate in value. The average time spent owning an NFT before it is resold is also increasing, showing that the market, while still speculative, is less volatile and volatile than last year.
Some observers have not taken into account these important indicators, which distort the overall picture of the sector. Thus, it is also important to note that the sale of what may be called ” second hand Increasing and accounting for a larger share of transactions than ever before. this” Second hand market According to Non Fungible, now accounts for 90% of transaction value and about 70% of sales volume.
Finally, as Non Fungible points out in its report, it is very important to point out that “ The 2022 trend confirms that, incrementally, the value of NFTs is equipped with this Cryptocurrency ” Although the price of Bitcoin is still volatile, such a trend confirms that NFTs are seen as a safe haven for cryptocurrency owners.
In a dedicated discord, site team members explained that, “ Although the number of active portfolios is decreasing, the number of buyers still exceeds the number of sellers “, which according to them, ” A sign that there is still interest in NFTs ” Furthermore, ” with sales of nearly $8 billion in the first quarter. 2022, we can’t really say that the market has collapsed “, they point out. ” We observe stability in the NFT market, in line with what we envision at the end of 2021“
A market of “sustainability”.
It should not be forgotten that, last year, the NFT sector grew extremely rapidly, attracting a large number of visitors and an equally large number of new projects. ” The NFT market is ‘digesting’ all the NFTs issued in the last year ”, explains Non Fungible’s report. The market, which had reached saturation and was chained to records, is just beginning to regulate and stabilize.
If therefore NFT sales decline, it’s not time to panic: it’s not the end of NFTs, far from it. Last year, some observers already predicted the death of these tokens, when the beginnings of the second-hand market for NFTs were barely visible – and today, they are still there.
However, it is not because the market is stabilizing that the price reached the record. The popularity of collectible NFTs is still there, and it’s still impressive. The Bored Ape Yacht Club collection is a perfect example: Monkeys are the most sought-after token right now, and they’re raising impressive sums. Their popularity is such that when the Bored Ape Metaverse project was launched, Field NFTs sold out so quickly that transactions held up the Ethereum blockchain for a while — proof that NFTs still have a lot to offer. Good days ahead of them