NFT market crashes as sales figures drop by a massive 92%
The tangible value of NFTs has always been a hotly-debated topic among tech enthusiasts. Simultaneously to the rise of cryptocurrencies like Bitcoin and Ethereum, these so-called non-fungible tokens were often touted as the next big thing emerging from the blockchain technology. Unfortunately, it appears that these hopes and dreams are now coming to a rather abrupt end as statistics hint at a possible crash of the NFT market.
According to a new report by The Wall Street Journal, which refers to data collected by NonFungible.com, NFT sales have plummeted by 92% since September 2021. Just eight months ago, an average of 225,000 NFTs were sold on a daily basis. This daily average now stands at just 19,000 recorded sales, while the number of active wallets in the NFT market has also dropped to just 14,000, an 88% decline compared to November 2021.
Over the past few months, several news stories have already indicated that a growing number of NFT buyers realized that their investments aren't nearly as valuable as they initially hoped. An NFT of Jack Dorsey's first post on Twitter for example only attracted laughable bids in relation to the lofty asking price of US$48 million. A worsening supply and demand imbalance may also contribute to a potential NFT market crash, as WSJ points out that there are currently five non-fungible tokens up for sale for every buyer in the NFT market.
Disclaimer: The information reported here should not be used as a basis for any personal investment decision. Notebookcheck does not offer cryptocurrency, NFT, or other trading, investment, or financial advice.