NFT sales crashed 92%, but is that the whole story?

NFT sales crashed 92%, but is that the whole story?

News spread this week of the collapse of NFT – with sales down 92% according to some data. The astounding rise of indestructible icons in the past year, spurred no doubt by the shutdowns, has sparked enthusiasm for this new art, but the fun seems to be over. Or is he? What is the full story behind this latest news?

Let’s remember that non-fungible tokens are digital files stored on the blockchain that create scarcity. You can read more in our guide, What are NFTs? Or try creating an NFT for free in our tutorial. We have NFT tips for beginners to learn the basics.

Back to this news headline. The slowdown as reported by crypto data site NonFungible shows a 47% drop in transaction volume in the first quarter of this year compared to the previous quarter. Sorry to bore you with numbers, but this is ultimately a sign that reality is putting pressure on a technology and market that has been heavy on hype and underutilized for some time.

NFT crash, as shown in the graph

It seems that NFT sales have been declining slowly since last year, although you can clearly see that some projects still have an impact (Image credit: Non-Fungible)

But the idea that the NFTs are over is probably an overstatement. For example, the Moonbirds NFT project added $500 million in trading volume, while the Solana blockchain saw a 91% month-on-month increase, posting nearly $300 million in NFT trading.

2022-05-06 13:50:56

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