Connect with us

NFT News

Is the NFT Market on its Way Out?



According to the Wall Street Journal, this market may be coming to an end due to the loss of interest from crypto investors. Several auctions have shown how some formerly valuable NFTs are being sold for absurd amounts of money. The number of active wallets linked to these assets has dropped significantly.Many people had predicted that this would happen. According to a study published by The Wall Street Journal on Tuesday, the bubble surrounding the market for non-fungible tokens (NFTs) may be bursting. NFT  sales are down this week to an average of 19,000 per day, according to data from NonFungible.

NFTs are similar to cryptocurrencies in that they are digital assets created using blockchain technology.

They protect the token’s intellectual property and assure its uniqueness and irreplaceability. NFT tokens, like cryptocurrencies, are digital tokens produced with the help of blockchain technology. In order to create an NFT, you need to mint it on a blockchain. The main difference between the two is that NFTs are not interchangeable like cryptocurrencies. They can represent anything from artworks and tweets to in-game items and virtual land.

On the other hand, as highly speculative assets, they have been badly impacted by the Federal Reserve raising interest rates. Furthermore, as previously reported by security firm Chainalysis, NFTs are being used for money laundering and other criminal activities. The stringent regulatory procedures in the United States and Europe, as well as the attention these assets are receiving, have also had a negative effect on the market.

The study’s authors wrote: “It seems that the NFT mania has cooled down for now, with daily sales falling to around $ 10 million from a peak of $ 100 million in early April.” The Fed plans to continue raising interest rates throughout the year, Chairman Jerome Powell and other officials have hinted. So the easy money policy implemented by the US central bank and the ECB is coming to an end. As a result, investors are moving towards other less speculative and safer types of investments such as scarce commodities and metals, notes the WSJ. Chainalysis discovered that assets were being artificially pumped up in price. Typically, the same sellers who attend the market are also the buyers, but with a different profile. An attempt is made to deceive the market on the value of its assets and their actual liquidity this way.

In the first Twitter Inc. tweet, the WSJ provides a good example of the NFT market’s collapse. In March of 2017, Jack Dorsey, the co-founder and former CEO of the social network, sold it to Sina Estavi, founder and CEO of blockchain firm Bridge Oracle for $2.9 million. When Estavi attempted to sell the same tweet a month later for $8 million, he found no buyers. Other examples include an NFT linked to a digital artwork by Mike Winklemann, better known as Beeple. The work was sold for $69 million in March, but by April 6th had lost nearly two-thirds of its value, falling to $23.6 million.

The study’s authors say that the market for NFTs has likely been overestimated, with some assets selling for “absurd prices.” Estavi, on the other hand, said that this does not imply that the NFT market is failing. He felt it was a “natural fluctuation” and that this market is at its early stages of development, implying it’s difficult to guess what will happen in the future.

The “Doggy #4292” NFT, designed by Snoop Dogg and released in early April, resembles an astronaut and was purchased for $32,000 worth of ETH. It has now been put on the market for $25.5 million but no offer has been made greater than 0.0743 ETH ($210). Even NFT interest is declining. According to Google Trends data, the number of internet searches for the term has decreased by about 80% since January. Another factor that is affecting the market is the oversupply of NFTs. There are five NFT assets per buyer, according to statistics from Chainalysis. At the end of April, 9.2 million NFTs were sold to 1.8 million buyers, the firm said.


Despite these dismal figures, and the fact that the NFT market has underperformed, Coinbase remains optimistic. A beta version of the site launched by the US exchange allows users to buy and sell NFTs by linking their wallets. The website with 4 million registered users does not charge transaction fees or charges for creating NFTs through it.


© Copyright 2022 | All Rights Reserved RISK DISCLAIMER There is a very high degree of risk involved in trading. Past performance is not necessarily indicative of future results. Financial Wars and all individuals affiliated with this site assume no responsibility for your trading and investment results. All the material contained herein is believed to be correct, however, Financial Wars will not be held responsible for accidental oversights, typos, or incorrect information from sources that generate fundamental and technical information. Options trading carries significant risk. Futures and futures options trading carries significant risk. Trading securities, security options, futures and/or futures options is not for every investor, and only risk capital should be used. You are responsible for understanding the risk involved with trading options. Prior to trading any securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options. The indicators, strategies, columns, and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Financial Wars may have a position or affect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. All of our partners or affiliated companies are in no way associated with the proprietary information provided by the Financial Wars Trading Method or software. All returns are based off buy side analysis and do not include commission costs. All projections are based on current returns. The projections do not account for any possible draw down effects on performance and performance projections. Actual returns and projected returns may fluctuate over the course of the service. "VIP" or "Lifetime" designation refers to the lifetime of the product only and not to be assumed to be the lifetime of any individual. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves and hereby and absolutely agrees to indemnify and hold harmless Financial Wars, its principals, agents and employees. As a Student and Chat Subscriber, we ask that you please cross check the information posted here. We ask that you challenge any information you feel is incorrect. We do not guarantee any of the information that is posted in the chat. All company names are trademarks or registered trademarks if their respective holders. Use of a mark does not imply any affiliation or endorsement by them.

Social Media Auto Publish Powered By :