The NFT market is showing a massive decline of about 92% since its peak last September. As reported by Wall Street Journal, NFTs are quickly losing momentum as the market collapses, leading to less interest in nonfungible tokens.
According to data website NonFungible, NFTs fell to a daily average of about 19,000 this week. This marks a 92% decline from its 225,000 peak back in September 2021 when NFTs were on the rise. The number of active wallets in the NFT market also fell by 88% to 14,000 this week from a high of 119,000 last November.
For those out of the loop, NFTs, or nonfungible tokens, are digital tokens (or “receipts”) that act as a certificate of ownership that’s then stored on a blockchain.
NFTs faced a hefty amount of scrutiny in the gaming industry when several companies, including Konami, Ubisoft, Square Enix, SEGA and more, all announced plans to tackle the new technology. Unfortunately, the backlash from the gaming community at large lead to some companies quickly pulling out of their plans altogether. However, Square Enix and SEGA are among the gaming companies that remain firm on their plans to explore the “potential” of NFTs.
In fact, Square Enix recently sold a chunk of their Western division – which includes Crystal Dynamics, Eidos Montreal and IPs like Tomb Raider and Deus Ex – to The Embracer Group in order to fund their blockchain investments, among other plans to bolster their divisions.
“Many NFT owners are finding their investments are worth significantly less than when they bought them,” wrote Wall Street Journal.
The future of NFTs, even outside of gaming, isn’t looking too bright. In early April, someone bought a Snoop Dogg curated NFT for $32,000 worth of the cryptocurrency ether. The buyer is now asking for an auction price of $25.5 million. As it stands, the highest current bid is 0.0743 ether, which amounts to about $210.
Google Trends revealed that searches for the term peaked in January, but has since dropped by 80% since then as interest dwindled.
Source: Wall Street Journal