- Data shows that Non-fungible tokens reach their highest value on May 3, with total sales amounting to $100 million.
- NFTS declined by a whopping 90% a month after its peak prices.
- The NFT technology proves to be more than a fashion, observing the move to property ownership from the rental economy.
It is undeniable that NFTs caught the media attention this year. As most people do not understand their value, Non-fungible tokens generated opposing views in the virtual market. The unusual contrasting views concerning these instruments rose amid their extraordinary prices and rapid rise in acceptance. With the 90% plummet, Protos.com data indicates that the NFTs craze is over.
NFTs Bubble Burst
According to data by Nonfungible.com, the NFT bubble could be over. Keep in mind that Protos.com reported a total of $19.4 million in sales of the asset in the last seven days of May. Contrarily, on May 3, NFTs had transactions of about $102 million. Moreover, the objects had $170 million on a week volume. For now, the market volume plummeted by around 90%, after its highest peak.
Artists’ empowerment and restitution are among the factors behind the NFTs’ demand surge. Meanwhile, Protos highlighted that sellers are shifting from crypto-arts towards virtual land ownership on sites like Decentraland and Sandbox. On the other hand, Nonfungible.com shows CryptoPunks maintains as the top-grossing market.
Moreover, when looking at active wallet addresses, the report declares a bubble burst. At its highest, NFTs had 12,000 for every category. The platform lost about 70% to only 3,900. Nevertheless, the data indicate decreased interest in art compared to secondary market non-fungibles. That is after game and collectibles NFTs witnessed massive profits.
Is Technology Here To Stay?
BTC’s value transformation equals the NFTs increased in popularity. Protos.com declared that the NFT bubble stayed for four months only. However, Nonfungible.com data indicates two more peaks as far as total sales are concerned: 11,009 in 2021 February and 16,953 in 2020 November. Moreover, the BTC price dip also influenced NFT sales.
What are your thoughts concerning the NFTs bubble? Should we forget about the asset? Feel free to use the comment section below.