92% Decline in NFT Sales - Is the NFT Boom Over?

Bishal Kumar Chanda

While there was an incredible hype around non-fungible tokens last year, it looks like the fevered excitement for this new technology is dying out. The Wall Street Journal's recent report made headlines this week, claiming the collapse of the NFT market. Furthermore, the report claims that there has been a 92% decline in transaction volume since September last year. What is the full truth behind the dwindling numbers?

Truth Behind The Wall Street Journal's Report

While quoting NonFungible, an NFT data analysis firm, The Wall Street Journal seemed to have cherry-picked their data. In fact, the NFT market has collapsed if we consider a 4.6% decrease in quarter-on-quarter sales volume as "collapsing."

Meanwhile, the total number of NFT sales has dropped by 46.96%. However, while the number of NFT transactions has declined, the value of the transaction has increased. According to the analysis firm, the average NFT sale price has shot up by an incredible 80%, from $587 in the last quarter to $1,057. 

Moreover, thinking that NFTs are over is an overstated belief. For instance, the Moonbirds NFT project added $500 million worth of trading volume. As a result, the Solana blockchain recorded nearly $300 million in NFT trading, a 91% month-on-month increase. 

In addition, the recent Yuga Labs Otherside NFT sale was in such demand that it crashed the Ethereum blockchain. Even with a floor price of $5,500, the virtual land sale for the upcoming NFT game was a quick sellout. Thus, "blue-chip" NFTs remain high in demand, and people are prepared to get a piece of the next big thing.

NonFungible said that the data is "conservative," disputing the claims on Twitter. On Wednesday, the firm tweeted, "Although the number of active wallets is also decreasing, the number of buyers is still higher than the number of sellers. We can assume this means that the interest in buying NFT is still present." 

What's The Future of NFTs

However, the overall NFT trend is indeed slowing at a macro level. Also, many feel that NFTs are approaching a similar bubble-burst moment to the dot.com collapse in the late 90s. Currently, NFTs are at the end of one curve and the start of another. In fact, this new boom could be the one that makes blockchain technology emerge as something interesting. 

In the future, we can expect blockchain technology to break free from the ups and downs of crypto. Thus, more people would be able to engage using fiat currency. In addition, we might see a rise in utility NFTs that have genuine uses and artistic merits. Moreover, people would likely diverge from the Ethereum blockchain to more stable, economic, and environmentally friendly blockchains like Solana.

However, a crash is expected, whether it is now or a year later. Also, this isn't the first time we are asking if NFTs are over. In fact, what comes next can redefine what NFTs are and how artists and creators use them. While the NFT hype is ending, we should welcome it as what comes next could be genuinely interesting.

Stay on the pulse of NFTS

Gain access to exclusive interviews with industry leaders, think pieces, trend forecasts, guides and more

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
By subscribing, you agree to our Terms of Use and Privacy Policy