In the third quarter, the sales of non-fungible tokens (NFTs) declined as much as 60 percent from the second quarter, according to blockchain tracker DappRdar. This decline comes as the interest in cryptocurrencies continues to decline and investors show of little interest in the speculative assets.
In the third quarter of this year, NFTs raked in $3.4 billion in sales, a decline from the $8.4 billion in the second quarter and the first quarter’s peak of $12.5 billion, according to DappRadar.
NFTs benefitted from the price gains and huge demand from investors in 2021. The current decline being experienced therefore correlates with the decline in investors’ interest and prices in 2022. Bitcoin, the world’s biggest cryptocurrency, is currently trading at around $20,000 compared to a peak of $69,000 experienced in November last year.
The biggest NFT marketplace, OpenSea saw a decline for the fifth consecutive month in September. “I think what’s unique about this environment is it’s the intersection of both the macroeconomic downturn and the crypto winter. The previous crypto winters were a little more isolated to just crypto prices so for that reason, I think it’s wise to be conservative about how long this could last,” CEO Devin Finzer said.
He, however, noted that OpenSea was in a “good spot financially” adding that NFTs have so much potential for the longer them. He described what is happening now as a “building phase” for NFTs.
According to market tracker NonFungible, weekly NFT buyers declined by more than 50 percent from their January peak. According to data from Art Market Research, NFT sales at Christie’s, Sotheby’s, Phillips, and Bonhams combined of 8.4 million pounds ($9.41 million) year to date, is down from the 127 million pounds recorded in the same time last year.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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