The sale of non-fungible tokens (NFTs) noted the drop in its third quarter. As per DappRadar, a blockchain tracker, it is because the crypto investors are facing the “crypto winter” and asking for the highly speculative digital assets that indicates few signs of comeback.
As Non-fungible tokens are a kind of blockchain-based assets which represent a digital file such as an image, video or item in an online game. It gained popularity in 2021, as crypto-rich speculators rushed to cash in on rising prices. But at present its sales volumes fell off.
NFT Sale
DappRadar report suggests that in Q3 2022 the NFT sales was noted at $3.4 billion, which was down from $8.4 billion in the previous quarter and $12.5 billion at the market’s peak in the first quarter of this year. At the beginning, the NFT market benefited from cryptocurrency price hike and high risk appetite among investors in 2021, and so on the same conditions turned sharply in 2022, due to the Central Bank rate rises and this prompted investors to dump risky assets.
On the other hand, the sales on OpenSea, the largest NFT marketplace, decreased for a fifth consecutive month in September. And over this the CEO of the firm, Devin Finzer, said that “I think what’s unique about this environment is it’s the intersection of both the macro economic downturn and the crypto winter.”
He also added in his statement that “The previous crypto winters were a little more isolated to just crypto prices so for that reason, I think it’s wise to be conservative about how long this could last.”
Finzer also mentioned that his firm is in a “good spot financially” and excited about the potential of NFTs in the longer-term. He named the downturn as a “building phase.”
Source: https://www.thecoinrepublic.com/2022/10/04/nft-sale-noted-the-drop-by-60-in-its-q2/