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The NFT market is collapsing, true or false?

Over the last few months, we have been inundated by “doomsday” reports of the NFT market staggering, flatlining, and even imploding; today, we’ll separate fact from fiction

Why are NFTs so polarising?

Ever since NFTs began gaining mainstream attention, people from far and wide have tried to speculate and control the destiny of NFTs. So far, that has proven to be easier said than done; NFTs have had ebbs and flows that most people did not expect.

In the last few months, “seasoned industry experts” have learned to be vaguer with their NFT predictions because the sector has shown that it bows to no human, and no one person or entity can control the ecosystem’s destiny.

From seasoned news powerhouses like the New York Journal to news startups, everyone is reporting on how the NFT sector is on course to lose its momentum. One thing we prioritize at NFT News Today is reporting facts and backing our reports up with data.

As you might know by now, the growth of the NFT sector over the last few months has been mindboggling, and most people have never witnessed a sector go from fringe to one of the most relevant in the span of 12 months.

When you have incredible growth over a short period, it’s only natural that the growth slows down periodically. With each downturn and sudden growth spurt, people try to make sense of the future for the NFT sector, leaving us with the question, is the NFT market collapsing?

It might be, according to this source

Nonfungible, a market research firm, the NFT ecosystem is on the verge of collapse, and the company used data from September 2021 to May 2022 to justify its stance. The report concludes that NFT sales have declined 92% since September 2021.

Admittedly, when we consider happenings over the last two weeks, it might seem comical or counterintuitive to believe that sales of NFTs have crashed by over 92% since September 2021.

The Russia-Ukraine war has affected the digital economy, with NFTs and crypto-assets suffering, the latter more than the former.

Additionally, The Independent, a UK-based news outlet, shared how new data points to NFT sales averaging 19,000 units daily in the first week of May, down from 225,000 daily in September 2021. The total volume of NFTs traded daily might be down from last year, but it might also be a case of nitpicking “data” to support a point of view or bias.

External pressures on the NFTs space

Elon Musk, who takes pleasure in trolling the internet, recently changed his profile picture to a $24.4 million Bored Ape Yacht Club piece that did not belong to him. A Sotheby’s official asked him to take the picture down, Elon Musk did not directly reply to the request, but 30 minutes later, he tweeted, “I dunno … seems kinda fungible.”

At the end of it all, picking and choosing data to support a point of view can show that the NFT sector is performing strongly or poorly, but a general, unbiased look shows us the truth.

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Musa
Musa is a content creator, student, and founder of Equatif.com He is interested in the creation of thought-provoking pieces about digital technology. When he’s not working on Equatif, he’s volunteering across West Africa to bring about social change. He’s most passionate about SDG 4.

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