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NFT Sales Crash 92%, but is This the Full Story?

Interest in NFTs, which was even supported by governments, suddenly waned. Is this really the end or a new beginning for non-fungible tokens? Read on to know.

June 6, 2022

While NFTs or non-fungible tokens, also known as “immutable tokens”, attracted the attention of almost everyone, and NFT markets reached billions of dollars in size last year, it looks like the agitated excitement for this new technology is dying out.

However, the latest analysis reveals that NFT transactions have slowed and even decreased 92% from this time last year. Daily NFT activities were around 225,000 in September 2021 and in the first week of May 2022, they declined up to 19 thousand. Moreover, the number of active wallets of NFTs is decreased by 88 percent. NonFungible has announced that users’ NFT searches have decreased by 89 percent since January 2022.

However, while NFT transaction volume has dropped by 46.96%, the value of the transaction has increased: the average NFT sale price has shot up by an incredible 80%, from $587 in the last quarter to $1,057.

In addition, 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.

Besides, the recent Yuga Labs Otherside NFT sale was in such demand that it crashed the Ethereum blockchain, even though the floor price was $5,500, and was a quick sellout. So we may say that “blue-chip” NFTs remain high in demand.

The new Future of NFTs

However, the overall NFT trading is slowing at a macro level. Also, for many people, 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, and, this new boom may make blockchain technology emerge as something interesting.

In the future, we should see blockchain technology break free from the ups and downs of crypto. Thus, more people would be able to engage using fiat currency. Moreover, we should see a rise in utility NFTs that have genuine uses and artistic merits, and people would likely diverge from the Ethereum blockchain to more stable, environmental and economic blockchains such as Solana, Wax and Flow.

However, a crash is expected, which may be here now or in a year. In fact, what comes next can redefine what NFTs are and how artists and creators use them. While the NFT hype looks like it’s coming to an end, we should welcome it as what’s next could be genuinely interesting.