The trading volumes in non-fungible tokens (NFTs) have decreased by 97%. The crash coincides with five months of straight declines as interest in NFTs begins to fade.
The crash coincides with five months of straight declines as interest in NFTs begins to fade. According to sources statistics, NFT monthly volume dropped to just $466 million in September after hitting a peak of $17 billion at the beginning of 2022.
As a result of aggressively tightening monetary policy, investment flows from speculative assets are being cut off. It also led to an additional wipeout in the crypto industry, which has seen roughly $2 trillion exit the market since its peak in November 2021.
NFT Interest Dwindling
In August, CoinGabbar reported that trade activity for non-fungible tokens had dropped by 40% in Q2 as interest in digital collectibles faded. Analytics noted:
“The crypto market encountered significant hurdles in mid-May, meanwhile, the NFT market was cooling down. The volume of NFT trading fell from $18.8 billion in Q1 to $10.26 billion in Q2.”
It was also discovered that OpenSea, the world's largest NFT marketplace, suffered a considerable decline in the daily volume of its trades. Trading volume on the NFT marketplace decreased to $10.05 million on August 26, the lowest since July 2021, marking a one-year low.
COINGABBAR VIEWS: A June survey revealed that the vast majority of customers, notably 64.3% of those polled, only bought NFTs to make money. It's not surprising that trading volume fell during the Q2 of 2022, given that more than half of investors purchase NFTs solely to boost their financial position.