Data from the website NonFungible, collated by the Wall Street Journal, shows that the number of NFT transactions has dropped to a daily average of just about 19,000 this week, down from a peak of 225,000 last September.
At the same time, the number of active wallets on the NFT market also decreased significantly. Data from NonFungible shows: the number of crypto wallets from a peak of 119,000 wallets in November 2021 to only about 14,000 wallets last week, with a decrease of up to 88%.
Worth mentioning, interest in NFTs also seems to have dropped significantly. According to data from Google Trends, the number of searches for the term NFTs peaked in January of this year and has dropped about 80% since then.
NFT (Non-fungible token) is a type of digital asset that uses blockchain technology to create a unique and irreplaceable chain of code. An NFT can represent anything from music, art, basketball cards or even a tweet.
Interest in NFT surged last year as many major companies and celebrities launched their own NFT collections, including Nike and McDonald’s.
Many big players in the game industry are also quick to “catch the trend” when selling digital items in the form of NFT, for example, in the case of Konami and Atari. However, this move has drawn a series of criticisms from users.
As the Wall Street Journal reports, many NFT holders are now finding their investments worth far less than they paid for them.
NFT of the first tweet from Twitter co-founder Jack Dorsey, which was purchased in March 2021 for $2.9 million by Sina Estavi, CEO of Malaysia-based blockchain company Bridge Oracle, was put up for auction earlier this year. However, this NFT did not attract any investors willing to bid above $14,000.
However, Sina Estavi said at the time that the auction’s failure was not a sign of a sideways NFT market, but “a normal volatility that can happen in any market”. .
According to Game Developers Conference’s Annual Game Industry Report, the majority of those surveyed (out of 2,700 people in total) are not interested in NFT.