The global NFT market has shown a sharp drop 16

The global NFT market has shown a sharp drop

Last year, the trend included NFTs – ownership of any digital asset recorded on the blockchain. NFTs quickly gained popularity, and the public rushed to buy them en masse in the hope of getting rich.

After the downturn in the cryptocurrency market, NFT tokens instantly depreciated, ruining the owners.

So, Paul Logan, a popular YouTuber bought this NFT picture for $11,623,000. It is currently valued at $6.

The global NFT market has shown a sharp drop 17

Trading volumes for digital art and collectibles registered on the blockchain have dropped 97% from the all-time high reached in January this year. They fell to $466 million in September from $17 billion at the start of 2022, according to Dune Analytics.

The fading NFT mania is part of a broader process of destroying $2 trillion worth of cryptocurrencies as rapidly tightening monetary policy deprives speculative assets of investment flows.

One day, the rapid growth of the NFT market had to end, and the hype around this technology would get boring. Perhaps it would have happened later, but geopolitical and economic problems hastened the trend reversal. At the same time, you should not completely discount NFTs. 

Yes, it is possible that in the near future the records set by the works of the artist Beeple and “cryptopunks” (a collection of pixel avatars) will be unattainable, but with the expansion of the number of players in this area and the arrival of museums, the situation will become more stable. Although growth of hundreds of percent per year can no longer be expected.