Non Fungible Tokens (NFTs) seem to no more be on board. From the hype to the number of sales; everything seems to be falling.
Non-Fungible Token first became popular in March this year after South Carolina-based graphic designer Mike Winkelmann who goes under the name Beeple sold an NFT for $69 million at an auction. The CEO of Twitter – Jack Dorsey, also sold his first tweet as an NFT for $2.9 million in that same month. Technoking and Dogefather Elon Musk also sold a song explaining what an NFT is as an NFT. One of the most recent NFT sales is a rare digital avatar known as CryptoPunk sold for more than $11.7 million.
According to data from NFT tracking website Nonfungible, total NFT sales in the first quarter of this year alone reached a whopping $2 billion but this isn’t the case in the successive quarter.
New data shows that there have been lesser sales of NFTs compared to when they first appeared in the first quarter. The NFT hype seems to be fading. According to data from Nonfungible, overall sales of NFT plummeted from a seven-day peak of $176 million on the 9th of May to $8.6 million on June 15th. This, therefore means that NFTs are back to where they started from at the beginning of the year, more or less.
The prices of major NFTs also seem to be falling. One of the most popular NFTs – CryptoPunks fell from its weekly average of $99,720 in early May to $50,840 at the beginning of June. SuperRare digital art pieces, another one, have also fallen from a record of $31,778 to $5,342 around the same time as CryptoPunks.
According to Gauthier Zuppinger; the Chief Operating Officer of Nonfungible explained that one of the reasons for the sharp fall of cryptocurrency is the sudden rise and fall in the sales of a new crypto collectible asset called MeeBits. “The thing is that each time you’ll notice such a quick increase on any trend, you’ll see a relative decrease, which basically stands for a market stabilization”, he explained.
Advocates are of the opinion that they still have a bright future ahead of them just like Bitcoin and cryptocurrencies in general. These advocates opine that these tokens have long-term value and that people will still spend more on acquiring them in the future. NFTs, just like Bitcoin are still in their early stage and will still be adopted more in the future, they said.