The “hype” around NFT has significantly decreased

After there was a huge frenzy around NFT tokens thanks to the involvement of various celebrities, influencers and athletes in 2021, these nonfungible tokens are experiencing their first significant bear market. Their sales have fallen to one-year lows now that BTC is trading around $20,000.

The hype surrounding the NTF, which began in early 2021, enjoyed its glory until around May 2022 – until then it was supported, at least at first glance, by a healthy cryptocurrency ecosystem and bullish investor sentiment. However, subsequent falls in the prices of cryptocurrencies from BTC to various altcoins in connection with negative news from global markets and the cryptoecosystem (the collapse of LUNA and UST, the problems of Three Arrows Capital and Celsius…) also affected the sentiment of NFT investors.

The worst results were NFT sales in June 2022, when they fell to around 19,000/day with an estimated value of $13.8 million – a number previously last recorded a year ago in June 2021. However, while last year this data was considered for impressive, they currently depict how interest in NFTs has waned in the cryptocurrency bearmarket.

According to data from nonfungible.com, the biggest hype around NFT tokens was on September 24, 2021, when the highest number of daily NFT sales was reached at 223,768, worth $78.3 million. In terms of dollar value, the record was set on May 1, 2022, when 118,577 NFTs were sold for $780.4 million.

Among the main problems of the NFT market are falling prices of the ETH cryptocurrency, lack of demand on the secondary market and too high fees for gas and minting new NFTs. As a result, NFT token capitulation has fallen by roughly 40% over the past 3 months, losing more than 66% of its trade volumes.