Sales of NFTs (non-fungible tokens) have fallen 92 per cent since September, according to new data, falling from a daily average of 19,000 this week, compared to 225,000 seven months ago.
Web searches for NFTs, according to Google Trends, has also fallen to by around 80% since January 2022.
For those still unaware of the phenomenon, an NFT is a “non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio. Because each token is uniquely identifiable, NFTs differ from most cryptocurrencies, such as Bitcoin, which are fungible.”
Hopefully that’s cleared things up for you…
The artist Beeple sold an NFT tied to his artwork for $69 million and many brands, musicians and artists jumped on board the bandwagon but the warning signs of a collapse got louder after and an NFT of the first tweet from co-founder Jack Dorsey, which sold in March 2021 for $2.9 million, didn’t receive any bids over $14,000 in a recent auction.
Whether this downward slide is a blip or the end of NFT days only time will tell, but investors in the tokens, no matter how much they protest, are surely having some sleepless nights.