LogInInterest in NFTs is also gradually decreasing falling by 80% since its peak in January.
The NFT market seems to be facing an inevitable decline, according to NonFungible data shared by the Wall Street Journal.
This week, NFT sales fell by 92% to a daily average of about 19,000, compared to a peak of about 225,000 in September 2021. Along with the sales, the number of active wallets on the market also dropped by 88%, from 119,000 in November 2021 to 14,000 in April 2022.
Interest in NFTs also seems to be decreasing. According to Google Trends data, the number of searches in the term peaked in January falling by 80% since then. Analysts note that the NFT market remains one of the most speculative, so there are fewer risky bets caused by the rising interest rates.
According to WSJ, NFT owners find their investments becoming less valuable as after the purchase the cost of tokens drops rapidly. NFT of the first tweet from Twitter co-founder Jack Dorsey was purchased in March 2021 for $2.9 million, and in April 2022 it was offered for no more than $14,000 at auction.
Analyst Daniel Ahmad noted that one of the possibles reason for that drop is the fact that most tokens are linked to images, the specific value of which is almost impossible to determine.
"Probably because people realised that the majority of NFT projects being JPEGs with no tangible value wasn't worth investing in, not to mention all the current barriers/issues," he writes. He also believes that owning game NFTs makes a little more sense since the buyer of such NFTs at least owns the assets and models, and not just JPG images.
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