We’ve seen several cryptocurrencies rise and fall in the past couple of weeks, so if you’re wondering how the NFT market has been doing, you’re not alone. To begin with, the crypto bear attack didn’t spare NFTs, as the NFT marketplace volume has now reached a new low.
The number of accounts trading NFTs has decreased, losing $4 billion in total monthly volume. The average sale value of popular collections like CryptoPunks, Axie Infinity, Bored ApeYacht Club (BAYC), and Mutant Ape Yacht Club (MAYC) has been low –for about six months now. Does this suggest that NFT investors had lost interest even before the bear market started?
According to Google Trends, the global interest for NFTs rose by 426% in August 2021, with several people buying NFTs. As of January 2022, there was a spike in NFT trading volume, with numbers reaching over $16.57 billion. However, as of May 2022, the NFT trading volume fell to almost $4 billion, with OpenSea’s volume decreasing from $4.9 billion in January to $2.6 billion in May, heading towards less than 1 billion in June.
Now for the more important question–do these numbers reflect the survival of NFTs?
NFTs aren’t just for collectors.
They’re for creators, too. NFTs have existed for several years, even before these tokens became popular. There are no signs that the excitement around NFTs is slowing any time soon among creators–who have some basic monetary and ownership rights of digital works. NFTs have also emerged as a powerful branding and marketing tool. Large corporations and even celebrities have created NFTs that have changed the way customers or fans interact with organizations.
Even if the interest in the NFT market declines– the tokens could still become a part of another more significant digital trend. Recently, many companies are converging with the metaverse, blockchain gaming, and the world of web3, and NFTs are a substantial part of this movement. Given their decentralized nature and transparent transactions, NFTs could further drive mainstream adoption of other crypto assets.