After breaking records in 2021, the price of NFTs has collapsed since the beginning of the year. The end of a (short) era?
Is the NFT market already falling? Early last year, non-replaceable tokens hit record sales, sometimes exceeding millions of dollars. These supposedly tamper-proof, blockchain-enrolled, digital artworks had a global but perhaps short-lived moment of glory. According to a report published on May 5 by the monitoring platform chain analysis and reported by The worlddisplay digital ownership certificates a severe decline since early 2022and the trend could deteriorate in the coming months.
Are NFTs Really Dead?
Just a few weeks ago, last April, the alarm bells went off. We then learned that the NFT of the first tweet in history, which sold for $3 million in March 2021, could no longer interest buyers. Worse, just a year after the historic sale, the auctions linked to the digital certificate surpassed the $10,000ie 300 times less than the starting value.
However, things had started very strongly for non-fungible tokens, to the point that even some major historic auction houses like Sotheby’s, Christie’s or Phillips had decided to venture into Web3 for several million dollars in sales. † despite a very irregular trend from month to monthMarket growth remained undeniable, notably marked by the launch of several successful collections, such as those from Bored Ape Yacht Clubrecently put forward by Elon Musk.
However, for several months now, and despite some initiatives such as the recent launch of an official collection devised by the Vatican, the NFT market has experienced a serious downturn. Between February and March 2022, the transactions recorded on the blockchain from 3.9 billion to just $964 million. A trend that could be confirmed in the coming months unless a new phenomenon disrupts the sector upwards. In mid-April, Yuga Labs put up for sale several virtual plots of the upcoming metaverse project called across. Everything seems possible.