Trading volumes in non-fungible tokens ( NFTs) have fallen 97% since reaching an all-time high in Jan.
As interest in NFTs begins to wane, the crash comes along with five consecutive months of decline. NFT monthly volume fell to $466 million in September, after reaching $17 billion at its peak at the start of 2022.
Due to tightening monetary policy rapidly, investment flows are being cut off speculative assets. This has led to a larger wipeout of the crypto industry. The market saw $2 trillion disappear since November 2021, when it reached its peak.
Trade Activity for non-fungible tokens had dropped by 40% in Q2 as digital collectables’ enthusiasm fall off.
“In May, the crypto market was facing significant challenges and the NFT market began to cool down.” NFT trading volume fell from $19.02 million in Q1 to $11.26 million in Q2.
OpenSea, which is the largest NFTs marketplace in the world, also saw a decrease in daily trade volumes. The trading volume on the NFT market fell to $10.05 million on August 26th, the lowest level since July 2021. This is a one-year low due to the crypto winter.
A survey conducted in June found that 64.3% of respondents only bought NFTs to make money. This is a surprising result considering that over half of investors only purchase NFTs for the purpose of improving their financial position.