Interest in NFT drops 60-70% as buyers drop below 800,000

The number of NFT buyers in February fell below 800,000 for the first time since October, and the search volume for the asset class was also significantly lower.

According to data from CryptoSlam, there were 796,009 NFT buyers in the secondary markets in February (down 12% from January), representing approximately $2.6 billion in revenue (down 40% from January).

However, January was a very successful month for the NFT, suggesting that February’s decline was simply part of a relatively healthy pullback. January saw a record number of secondary NFT buyers at 904,130, and OpenSea also saw a record total sales volume of around $5 billion in January before falling back to around $3 billion in October.

On the other hand watch Google trends, the global search volume of the keyword “NFT” also seems to have decreased significantly. For the past week, interest rates have been around 60-70% below their late January peak (January 23-January 29).

The US is the country with the highest global interest in NFT at the time of writing, while Japan is the lowest of the 61 countries, although local tech and telecom giant Rakuten launched the NFT market back at the end of last month.

NFT advocate and managing partner of the NFT hedge fund, Sfermion Andrew Steinwold, compared the current slump to the bull and bear markets that followed in 2017/2018 as he wondered whether or not interest rates were bound to rise again soon.

Source: Andrew Steinwold

It’s not exactly clear why general interest has dropped over the past month, although the leading platform OpenSea fell victim to a $1.7 million hack in February, among many other events.

The conflict between Russia and Ukraine may have also drawn attention to cryptocurrencies, as the globe seems more interested in use cases like digital payments, fundraising, and store of value during uncertain times.

March situation so far

According to CryptoSlam data, 10 of the top 12 blockchains supporting NFT also saw a drop in sales volume over the past 24 hours. The two largest platforms, Ethereum and Solana, fell 4.24% and 11%, respectively, while Avalanche and Panini (27.79% and 36.2%) were the biggest detractors.

Flow at #3 and Arbitrum at #6 were the only networks with gains, 20.89% and a whopping 539%, respectively.

Sales Volume on Blockchains | Source: CryptoSlam

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