There has been a massive decline in the number of interested players in the NFT market over the last couple of months.
A First In Three Months
For the first time since October, the number of unique NFTs purchased wasn’t up to 800K, with on-chain analytics firm, CryptoSlam, calling the trend a ‘mini-bear market.’ The CryptoSlam data further revealed a 14% decline in the number of unique NFT buyers in February 2022 compared to January 2022.
Also, the total sales volume of NFTs dipped by 45% in February compared to January. NFT sales in January (which was about $4.4B) were close to the peak figures experienced in august when sales hit $4.5B.
The Bearish NFT Market
As the Russia-Ukraine war drags on and its negative impact on the global financial markets continues, many investors had hoped that the NFT sector would be a good investment similar to the way BTC was a good investment for those who invested during the heat of the pandemic in march 2020. However, that hasn’t been the case as NFT trading volumes continue to decline. The sales volumes on blockchain networks that offer NFT services have also declined massively.
The CryptoSlam data also revealed that there had been a notable surge in NFT sales volume within the past 24 hours on only two of these blockchain networks that provide NFT services. Those blockchain networks are Arbitrum and Flow. The former’s sales volume surged by 539%, while the latter’s surged by 21%.
All the other networks (notably crones, Solana, Binance Smart Chain, and Ethereum) made losses. CryptoSlam’s CMO (Yohann Calpu) revealed in a recent interview with Forkast that “this decline should be expected as there have only been few bear markets in the NFT industry since late 2020 despite a 70X increase in NFT sales since that time.”
A Renewed Uptrend Is Expected Soon
Many NFT players, especially those making a profit from the sector, are always eager to contribute to its development. David Moore (the CEO and co-founder of known origin labs) explained that “many of those profiting from the NFT market are creators who don’t mind supporting fellow creators or give back to the NFT community after making some decent sales off their works.”
Nevertheless, experts agree that the sales volume in the NFT industry will soon rise again as this decline is temporary, as is always the case. Also, the strong performance two months ago only lends credence to the fact that a bear NFT market is only temporary.
But the majority of those with massive investment in this asset class remain anxious as interest in NFTs keeps declining. A simple google trends search reveals about a 65% decline in the search for NFTs compared to late January searches.
Furthermore, a new Design Bundles survey has revealed that Axie Infinity tops the list of the most sought-after NFTs with nearly 3.9m monthly searches worldwide. The promotion of NFTs by famous figures has made many people label NFTs as the “new crypto.” the second and third most sought-after NFTs are the NFTs of the sandbox and NBA top shot.