Italian tomato sauce on Vincent van Gogh’s ‘Sunflowers’, worth $86 million? owners can NFTs did not happen. Non-fungible tokens exist on the blockchain and are traded exclusively over the internet.
Digital images of monkeys, kittens, or so-called cryptopunks had a hype phase last year that should end quickly. After a sharp rally, the NFT market is now on a downtrend.
Quarterly NFT Market Report NonFungible.com takes over the events of the past few months. Although the analysis team does not have a “crystal ball”, there may be a light at the end of the tunnel for the NFT sector.
yet devastating Terra collapse And the bad macroeconomic situation in general, it’s no wonder that the capital markets have been in the doldrums for weeks now. Crypto assets and NFTs were not left untouched either. Accordingly, the search volume for “non-fungible tokens” is relatively low.
As the report also notes, China ranks first in terms of search volume. “This apparent interest in NFTs runs counter to the country’s rhetoric, which opposes cryptocurrency and any type of unregulated asset,” the authors wrote. Last year, the Chinese central bank imposed a ban on bitcoin mining. The industry is still thriving.
A closer look at the country distribution reveals parity: four of the five countries with the largest search volume are located in Asia. The only non-Asian country to make the top five is Nigeria. Although cryptocurrencies especially bitcoin should also be banned here, the Nigerian population has always shown great interest in crypto technology.
Analysts find it interesting that “official” bans do the opposite. Then, the population is only interested in the forbidden subject.
Depression across the board
affiliate Ethereum merger Mid-September was a complete success. So far, however, there has been no sudden price increase. On the contrary: between the beginning of April and the end of September, the price of ether coins fell by 57 percent. At the same time, NFT has also lost a lot of value. The average loss per NFT is a whopping 87 percent.
At the same time, nearly half of the users left the color photo market. While approximately 450,000 active wallets were still registered on the various blockchains in January, that number is now around 200,000 active users. The analysis team mitigated the decline:
There are still more buyers than sellers, at a ratio of about 1.3 buyers to 1 seller.
Accordingly, demand is still greater than current supply. At the end of the third quarter, the ratio appears to have leveled off more. For 150,000 buyers, there will be 110,000 sellers.
When is the next bull race coming?
However, there is a glimmer of hope. While analysts say some NFT projects are “dead,” most of the industry behind them is not automatically dead. “The era of the NFT market, where profit and speculation reigned, is over. Little by little, a new history of this technology is being written,” he continues. The argument for this change is the interest on the part of the different industries.
And indeed: companies with well-known brands such as StarbucksNike, or Adidas competitor Gucci You’ve been looking for a way to get into the cryptocurrency and NFT ecosystem for a long time. Tokens should mainly provide benefits to customers.
NonFungible.com He understands the impact of learning from this: “The industry has learned its lessons from 2021 and is preparing for the next wave of mass adoption.” Analysts do not disclose exactly when this point in time. After all, they do not have a “crystal ball”.
NonFungible.com has collected blockchain data via private “Blockchain nodes”. The findings examined in this report came from analyzes of ERC-721 tokens, Ethereum, Ronin, and Flow blockchains.
Do you want to buy cryptocurrency?
Trade over 240 cryptocurrencies such as Bitcoin and Ethereum on Phemex, a platform for beginners as well as experienced investors.
The latest issue of BTC-ECHO Magazine
You may also be interested in this