read from Wall Street Journal:
The NFT market is collapsing.
The sale of nonfungible tokens, or NFTs, fell to a daily average of about 19,000 this week, a 92% decline from a peak of about 225,000 in September, according to the data website NonFungible.
The number of active wallets in the NFT market fell 88% to about 14,000 last week from a high of 119,000 in November. NFTs are bitcoin-like digital tokens that act like a certificate of ownership that live on a blockchain.
Rising interest rates have crushed risky bets across the financial markets—and NFTs are among the most speculative.
Since hitting highs in November, the tech-heavy Nasdaq Composite has fallen 23% and bitcoin has fallen by 43%. The Federal Reserve is slated to raise rates this week and next month. As the central bank’s easy money policies wind down, investors have turned to more defensive stocks like consumer staples.
Many NFT owners are finding their investments are worth significantly less than when they bought them.
That lack of interest isn’t unique. Interest in NFTs measured by the number of searches for the term peaked in January, according to Google Trends, and has fallen roughly 80% since then.
The imbalance between supply and demand is also hurting the NFT market. There are about five NFTs for every buyer, according to data from analytics firm Chainalysis. As of the end of April, there have been 9.2 million NFTs sold, which were bought by 1.8 million people, the firm said.
The NFT market is collapsing.
The sale of nonfungible tokens, or NFTs, fell to a daily average of about 19,000 this week, a 92% decline from a peak of about 225,000 in September, according to the data website NonFungible.
The number of active wallets in the NFT market fell 88% to about 14,000 last week from a high of 119,000 in November. NFTs are bitcoin-like digital tokens that act like a certificate of ownership that live on a blockchain.
Rising interest rates have crushed risky bets across the financial markets—and NFTs are among the most speculative.
Since hitting highs in November, the tech-heavy Nasdaq Composite has fallen 23% and bitcoin has fallen by 43%. The Federal Reserve is slated to raise rates this week and next month. As the central bank’s easy money policies wind down, investors have turned to more defensive stocks like consumer staples.
Many NFT owners are finding their investments are worth significantly less than when they bought them.
That lack of interest isn’t unique. Interest in NFTs measured by the number of searches for the term peaked in January, according to Google Trends, and has fallen roughly 80% since then.
The imbalance between supply and demand is also hurting the NFT market. There are about five NFTs for every buyer, according to data from analytics firm Chainalysis. As of the end of April, there have been 9.2 million NFTs sold, which were bought by 1.8 million people, the firm said.
