The NFT Industry Is Showing Signs of ‘Slowing Down,’

The non-fungible token (NFT) train looks to have hit the brakes after a roller-coaster ride last year.

The sector is exhibiting indications of downturn a year after the most expensive NFT sold for $69.3 million, with OpenSea’s selling volume plummeting to $2.5 billion last month from a high of twice that in January.

Last month, however, the total number of people buying digital collectibles fell to 635,000, with an average price of $427.

Pablo Rodriguez-Fraile, an NFT enthusiast, told Reuters:

“Obviously the enthusiasm and interest that we had at some periods last year is not here anymore. I think we achieved something that wasn’t sustainable.”

Modesta Masoit, the director of finance and analytics at DappRadar, on the other hand, feels the market is in a moment of consolidation rather than decline. She believes that Russia’s invasion of Ukraine is one of the reasons why investors are becoming cautious.

“Everyone was expecting there to be a period of consolidation,” she told Reuters. “It isn’t going away; rather, it is consolidating.”

Last September, the average price of an Art Blocks NFT, a set of computer-generated collectibles, was $15,000. In March, though, prices fell to roughly $4,200.

However, six-figure NFTs, such as the Bored Ape Yacht Club collection, continue to sell for approximately $300,000.

In 2021, the entire transaction volume of digital collectibles surpassed $17 billion. The number of NFT holders and traders increased to 2.5 million, while the number of people purchasing increased to 2.3 million, a significant increase from the 75,000 in 2020.

According to a poll conducted by digital security firm Privacy HQ, nine out of ten people have been scammed, half have lost access to their NFTs at some time, and two-thirds have panic-sold in the past.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Patrick

CoinCu News