Is the Non-Fungible Token (NFT) Hype Vanishing? Here’s What to Know

Recent reports show NFT sales on a massive downtrend. That triggered a worrying sentiment within the Non-fungible token market as the space gradually deteriorated following impressive surges. News from Non-fungible highlighted NFT market performance in 2022 Q1. The published report triggered worry, showing a diminishing NFT culture.

The Q1 of 2022 has witnessed some nerve-wracking trends within the NFT world. Non-fungible tokens have seen a 46% decline in sales. Also, the average sales per day declined to 19,000, a 92$ drop from the highs of around 225,000 in September last year.

Moreover, there has been a nearly 30% plunge in NFT buyers, attributed to two factors. Active trades dropped from about one million accounts in 2021-end to approximately 491,000 (according to NBC reports). With the massive supply, Chainalysis reports about five Non-fungible tokens for each buyer. This lack of scarcity contributed to the NFTs’ downfall.

Another notable trend within the NFT space is the 50% surge in overall losses amid resell. One of the recognized examples was during Jack Dorsey’s initial tweet NFT attempted resell. The buyer reportedly paid $2.9M in March last year for the assets, expecting to resale the NFT at about $25 million. However, the highest bidder quoted $6,800, massively lower than the purchase price.

Then, There’s This Data

The report by Non-fungible indicated a sarcastic NFT market review of 2022 Q1. Nevertheless, the latest CryptoSlam data revealed a different narrative for NFT actions as we join May 2022. The past month saw multiple top blockchains handling enormous NFT sales volume. Ethereum led the pack, while Solana (SOL) was a distant 2nd, followed by Flow (FLOW), Polygon (MATIC), and Avalanche (AVAX).

Ethereum registered a 66% NFT sales growth to $3.9 billion. Most of that came from the Moonbirds and Otherdeed collections, their sales totaling $1.3 billion. Solana’s sale volume stood at $325 million, following a 50% increase. Top NFTs on this ecosystem, DeGods, and Okay Bears, are valued at about $100 million.

Lastly, the Non-fungible token global index in sales volume noted a 60% increase to $4.44 billion. Though the NFT marketplace dropped early in the year, it gradually gained pace, as the figures suggest.

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