After the notable beginning, some signs show the NFT crypto craze might just be winding down.(NFT crypto craze over) The average price for an NFT on April 5 was about $1,256. In February, the average price for an NFT was pegged above $4,000, according to NonFungible.com.
Last year, the total sales of NFTs amounted to $250 million, while February alone saw sales of $220 million. At its all-time height on February 21, the weekly NFT trading volume reached $196.4 million. In March, Mike Winkelmann, a famous digital artist known as Beeple, sold an NFT artwork for $69 million. However, things now have taken a downturn, with the average price of an NFT $1,256 from $4,000 at its peak.
For weeks, the media has been brought to a standstill by a flurry of sales about the crypto asset class non-fungible tokens, or NFTs.
Enter The NFT Season
NFTs – unique digital assets in a blockchain used to show digital forms of objects like music, art, videos, and images, have been around since as early as 2012 – 2013 when Colored Coins entered the crypto sphere. However, they received renewed interest in 2021, constantly being in the headlines.
NFTs hit the media hard with a string of outstanding, or, maybe, scandalous, sales of digitized tokens. The NFT mania made its way into the music, gaming, sports, poetry, art, and luxury industries.
Some sales made people question whether we all lost it during the lockdown. Many experts have linked the sudden interest in the asset class to the COVID-19 pandemic. Some of the most eye-catching NFT sales include:
- Beeple’s mega sale: A piece of digital art selling for $69.3 million at an auction.
- The CryptoPunks #7804 and #3100 at Larva Labs both selling for $7.6 million each.
- Canadian singer Grimes sold more than $6 million worth of NFT art in under 20 minutes.
- Jack Dorsey, Twitter’s CEO, sold his first tweet for $2.9 million.
- Former T-Mobile CEO John Legere buying DJ Steve Aoki’s NFT art for a reported $888,888.88.
- An NFT “self-portrait” by Sophia the Robot selling for nearly $700,000.
According to the data from NonFungible.com, more than 160,000 NFT sales were completed in February. Total NFT sales in 2020 were worth about $250 million. However, February alone saw sales exceeding $220 million, according to NonFungible.com.
In March, OpenSea reported that the transaction volume on their platform increased over 100 times in the last six months. OpenSea reported a monthly sale of $95.2 million in February.
Is The NFT Craze Over?
The claim of declining interest in NFTs is backed by another crypto research company, The Block. The company reported a similarly large decline for both prices and NFT sales.
According to The Block, weekly trade volumes, as well as other trade metrics for NFTs, have declined steadily since mid-February.
On the Flipside
Regardless of the fall in NFT crypto sales, there are still some major transactions ongoing, as a total of $20.5 million has been sold on the NFT marketplace, CryptoPunks, over the last 24 hours.
The weekly volume, user volume, and transactions on NFT marketplaces all suggest a decline in interest. However, based on the crypto market, we all know that it may be too early to pass the verdict on whether NFTs are done.