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NFT sale declines: an overview of the crypto-asset market
After the boom, the crypto market is now experiencing a lull. Last quarter, NFT sales decreased by 60 percent. The main reason for the decline in interest in the digital asset, experts say, is investor apprehension. The latter are extremely cautious about the options for investing money in view of the instability that has been observed in the crypto industry this year.
Last quarter, sales volumes of nonreciprocal tokens totaled $3.4 billion. For previous periods in 2022, those numbers were $8.4 billion. In the first three months of last year, NFTs totaling $12.5 billion was sold on the market. As you can see, the decline in the sector is quite impressive, and experts believe that in the near future demand for tokens will not recover.
2021 was an extremely successful year for the NFT sector when investors were actively interested in risky instruments. In addition, the price of cryptocurrencies skyrocketed, which also had a favorable effect on the volume of sales of digital assets. However, global trends changed in 2022. Geopolitical tensions, rising inflation, and, as a result, rising interest rates made investors more cautious about investing. As a result, the value of bitcoin fell to $19,000 per coin, although in November 2021 its price reached a record high of $69,000.
Experts believe that the NTF market is in a state of microeconomic decline. In addition, it is affected by crypto winter – a slowdown in the dynamics of digital money.
However, members of the crypto industry are optimistic about the future. The head of OpenSea, the world’s largest NFT platform, notes that at the moment the marketplace has a stable financial position. And he calls the current downturn in the market a phase of building a stronger and more stable structure.
Despite the fact that market participants give NFT enormous potential and believe that in the long term the tool will show excellent results, analysts are rather skeptical about the near future. According to the NonFungible tracker, last month, the weekly number of token buyers decreased by more than 2 times compared to the number of investors at the beginning of 2022, when there was maximum interest.
In 2021, there was an active integration of the traditional art world into the digital world. Then many artists and designers began to sell NFT of their works. However, the surge of interest faded rather quickly. According to data from major auctions, the total volume of token sales was 8.4 million pounds. In 2021, this figure was 127 million pounds, indicating a decline in demand for NFT, including in the art sector.