In 2021, NFTs dominated the market and became a hot topic even among celebrities. Despite showing signs of recovery in recent months, things still seem to be off track. According to data provided by Artemis, NFTs experienced a surprising 51.5% drop, making them the worst-performing group among the 21 sectors in the market. The emerging data has increased doubts about NFTs.
General Situation of NFTs
The declines did not go unnoticed by market followers. The NFT sales volume provided by CryptoSlam for the last 30 days showed a 46.03% drop, amounting to $480 million.
The leading blockchain in the NFT market, Ethereum, along with major blockchains like Bitcoin and Solana, saw drops in NFT sales volumes ranging from 38% to 50%. The noticeable decline highlights the significant decrease in interest in NFTs.
NFTs and Expert Opinions
Various events in the market are said to have contributed to the situation with NFTs. Paul Thomas, Founder and CEO of Somnia, emphasized the decline in interest and investors moving away from the market:
Utility is becoming more important than ever for NFTs. One of the biggest issues with NFTs is that everyone tries to replicate what was previously successful. Projects need to do something exciting and original instead of just following the hype to make a real impact.
Once one of the biggest projects, Bored Ape Yacht Club (BAYC) and similar massive NFT projects are far from their historical peaks, with the floor price dropping below 10 ETH in early June.
During the declines, prominent figures like Shark Tank’s Mark Cuban sold multiple NFTs, contributing to the downturn. These sales cast doubt on the long-term viability of NFTs.
Despite the overall market decline, some projects like Pudgy Penguins and Milady Maker saw increased sales volumes. Additionally, the sales volume of NFTs on the Ronin network also increased, suggesting that NFTs might not be entirely finished.
Ferrum Labs’ CTO Taha Abbasi commented that interest in NFTs might be renewed and stated:
Perhaps the era of exaggerated pixelated NFTs is over, and another media integration or innovation could soon make digital collectibles the center of attention. NFT innovators need to do something serious to help this niche survive.
