Are NFTs going to Disappear?
A report in The WSJ states that "NFT sales are stagnating" - and yes, it asks if this is the "beginning of the end" for unmistakable tokens.
Paul Vigny's article discusses some of the sad statistics from NonFungible - and claims that the number of NFTs sold this week has dropped to a daily average of about 19,000.
This is a 92% drop from a staggering high of 225,000 in September, when the market was at its peak.
The article claims that it was also accompanied by a decline in the number of active wallets, and data suggest that it has dropped to just 14,000 this week.
Numerous brutal examples also show how the value of buying the NFT for large sums of money has fallen. China Estavi, which bought a tokenized version of Jack Dorsey's first tweet for $ 2.9 million, recently withdrew the NFT from the market after attracting only $ 14,000.
While the WSJ article doesn't paint a nice picture, it probably doesn't tell the whole story.
Data from DappRadar suggest that demand for the NFT has not declined, as reported in the newspaper.
He said last week that 150,000 unique wallets had interacted with smart OpenSea contracts last week - 10 times more than NonFungible data showed.
Statistics also show that there have been 67,800 transactions on OpenSea in the last 24 hours alone. It includes buying and selling activities, which means that it is not directly comparable with the data reported by WSJ. But there is much more.
What's happening?
This is not the case when WSJ is trying to get a feather out of its sight - and the story is unmistakably the same: the NFT market has cooled sharply in recent months.
It noted that the market was full of NFTs, so there were five for each buyer. And he points out that Google's search activity for the NFT has declined in recent months, as have most other cryptocurrencies.
But it's not all destruction and darkness.
The launch of the long-awaited NFT collections is still eagerly sought after by crypto enthusiasts. In fact, over the weekend, daily trading volumes on OpenSea broke records - about $ 476 million a day - as investors struggled to get into the hands of the virtual land of Otherside, and the creators of the Bored Ape Yacht Club launched a meta version.
A number of new NFT brands are also available from Coinbase and Kraken. There is no doubt that the mania for unmistakable tokens has disappeared compared to the difficult days of 2021 - but "flatlining" could be, in a word, even more intense.