DappRadar, a blockchain tracker, reports that NFT sales dropped precipitously in the third quarter as cryptocurrency investors prepared for a “crypto winter,” and there is little sign of any increase in demand.
In Q1 '22, #NFT sales peaked at $12.5bn before falling to $8.4bn in Q2.
In #Q3, they plunged to $3.4bn.
If the trend continues, #NFTs could eventually end up being worthless. ⁰⁰Why have NFT sales fallen so much this year?
Share your thoughts in the comments 👇
— stefano monzo (@stefmonzo) October 4, 2022
While sales volumes have fallen recently, they gained immense popularity in 2021 as wealthy cryptocurrency investors took advantage of increasing prices.
The Staggering Difference
Compared to $8.4 billion in the second quarter of 2022 and $12.5 billion at the second quarter’s high, NFT sales in the third quarter were $3.4 billion.
Just a few weeks ago, everyone was bearish about the #NFT market as $ sales plunged. Then we saw an amazing explosion of #PudgyPenguins, #BoredApe & pet rocks. Don’t forget: #crypto market moves in cycles – and NFTs are part of the market. #XPnetwork #btc pic.twitter.com/lu57Tm5Xnn
— XP.NETWORK (@xpnetwork_) August 20, 2021
Several factors contributed to the growth of the NFT industry in 2021, including the rise of cryptocurrency prices and investors’ willingness to accept high-risk investments. However, these factors have changed dramatically since 2022 due to an increase in central bank rates that causes investors to sell off hazardous assets. Currently, bitcoin is trading at about $19,000, down from its November high of $69,000.
OpenSea, the world’s largest NFT platform, reported a decline in sales in September
According to Devin Finzer, CEO of OpenSea, “I believe it’s a unique time to be in this sector as macroeconomic slowdown meets crypto winter.” It is prudent to consider how long this may endure since “the prior crypto winters were a bit more isolated to only crypto pricing.”
The weekly number of NFT buyers has more than halved since the start of the year, according to market watcher NonFungible.com.
NFTS have been declining sharply all year. In the first quarter of the year, NFT sales peaked at $12.5bn (£11bn) before falling to $8.4bn in the second quarter. In the third quarter, they plunged to $3.4bn.
Is the buzz dissipating? Is it game over for NFTs ?
— Joey Martin (@JoeyTheAthlete) October 4, 2022
Despite the craze’s early embrace by the traditional art market, sales have plummeted. Earlier this year, Christie’s, Sotheby’s, Phillips, and Bonhams sold 127 million pounds worth of NFT at Christie’s, Sotheby’s, Phillips, and Bonhams. But this year, combined sales at the four auction houses have equaled 8.4 million pounds ($9.41 million).