NFT trading volumes fell 97%

According to the calculations of the research company Dune Analytics, which refers to Bloombergin September, global NFT trading volume was only $466 million, while in January it reached $17 billion.

Experts believe that the collapse in the NFT market is associated with a more general trend of a sharp reduction in the volume of the cryptoasset market, which has lost about $2 trillion since the beginning of the year. This, in turn, can be explained by the tightening of monetary policy by many central banks of the world, which reduces the amount of cheap borrowed capital available for investment in high-risk and/or speculative assets.

The first signs of a downturn in the NFT market were marked still in the spring. If at the end of January there were 21,296 sellers in the NFT segment, then at the beginning of April there were only 7210. “It is obvious that the enthusiasm and interest that we saw quite recently has disappeared— noted already then, in an interview with Reuters, a major American collector of digital art, Pablo Rodriguez-Fraile. “I believe that we have achieved something that did not have a sufficient margin of safety.”