The Wall Street Journal isn’t beating about the bush in its latest article about NFTs. “The NFT market is collapsing,” is the very first sentence. This is based on data from the website NonFungible suggesting that there are currently around 19k daily sales of NFTs, down 92% from a peak of 225k in September 2021.
Meanwhile, the number of ‘active wallets’ being used to buy and sell NFTs has fallen by 88% to 14k since its high of 119k last November.
Is this terrible news and a sign that NFTs are heading down the dumper? We’d argue that it’s more likely to be a positive correction in the market: the hype has died down, low-quality NFTs aren’t selling, and the hard work is really starting on figuring out how this technology can be useful and meaningful in the longer term.
Not-so-good news for late bandwagon jumpers of the ‘Bored Ape Yacht Club but with cartoon [insert other animals here] instead’ variety, but perhaps encouraging for anyone who thinks NFTs need a lot less hype and get-rich-quick merchants, and a lot more thought.
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