Are people already getting bored of NFTs?
Prices and sales volumes are dropping substantially.
It seems that the initial rush of NFT sales has subsided into a lull. That’s according to data from NonFungible, which tracks the NFT industry.
Their data shows that the average sale price of NFTs has dropped to $2,000. That’s still a high price for a JPEG, but it’s nowhere near the nice $6,900 all-time high from January 2 of this year.
Even some of the most well-known projects, like the Bored Ape Yacht Club, are down, although by a much lower percentage.
Overall, sales volume is down over 30-percent since the January boomtimes, according to CryptoSlate. Why? Well, it’s almost a perfect storm of bad external factors.
OpenSea, one of the largest NFT marketplaces, has been plagued by faked projects and huge hacks. Ubisoft tried to make inroads, and its fans (and some employees) spoke out against the technology.
READ MORE: Is the NFT market crashing and burning?
StockX came up with an actual use for NFTs and was sued by Nike for its troubles. Oh, and you know the market is in trouble when GameStop thinks it can make a quick buck or three.
Add all of those to Russia’s invasion of Ukraine, and what that does to both the geopolitical situations in the region and the world. That is worrying investors of all kinds. The stock markets are down over the last few months; when they were rebounding from pandemic restrictions.
The cooling effect in NFT marketplaces could be from economic reasons. It could also be that early investors have already made their cash, and exited. As with all new marketplaces, it’s too early to attribute the slump to either option.
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