The NFT market is losing momentum as Russia continues to invade Ukraine and global geopolitical tensions increase. Since February 24, when Russia launched a military attack on Ukraine, the average selling price of NFTs has fallen by about 30%. If NFT-focused industry trackers should be believed, though the decline has been around for a long time.
NFT sales volumes and average prices have fallen steadily since their all-time highs in January this year. Non-fungible tokens have been a buzzword for the past year, but by 2022 their numbers are constantly declining, indicating a loss of interest.
As Bloomberg points out in a report, industry tracker NonFungible data shows that the average selling price of NFTs has dropped to less than $ 2,000. By comparison, market-wide NFTs reached a record high average selling price of $ 6,900 in early January.
A similar decline can be seen in the average daily total sales for two months. Towards the end of January, this figure was recorded at $ 160.2 million. That’s currently down to just $ 26.2 million, about one-sixth of its peak.
Bloomberg points out that the decline in numbers is seen in the decline in sales of some of the most popular NFT collections. With the exception of CryptoPunks, a popular NFT collection that draws pixelated numbers, most of OpenSea’s NFT collections are declining in sales at OpenSea, the world’s largest NFT marketplace.
For example, according to DappRadar data, NBA top shots have fallen 26% over the past week and Axie Infinity has fallen 15%. If you look at OpenSea’s Bored Ape Yacht Club, you’ll find that even the popular NFT collection has lost interest, at least for now.
Besides the ongoing war between Russia and Ukraine, there is another reason why NFT sales have declined. Countries around the world are developing new regulations on other crypto assets such as cryptocurrencies and NFTs, especially as this month’s fiscal year ends. Therefore, potential buyers may be waiting for a little more clarity about how these regulations will be formed before investing more money in the system.
Or, a scary possibility for the crypto community is that people have already lost interest in NFTs. Last year, promotions for new NFT collections were ubiquitous, including all major social media channels. New projects still appear from time to time, but the level of follow-up that the first collection received at the time of casting cannot be achieved.
Do you think the NFT era is over? Please let us know your thoughts in the comments section below.