Are companies cooling off the NFT trend?
Are companies now cooling off with the NFT trend? It certainly looks that way. Take a look below to see the best indicators that things are slowing down a bit.
Searches are down
If you look at the latest Google trends, you will see that searches for NFTs have halved since the original peak. There was a time when the term NFT was actually more popular than cryptocurrency as well, so to see it cool down the way it has is remarkably shocking. Regardless, this is a key indicator that the NFT trend is not as hot as it once was.
Average prices are falling
If you look at the average selling prices for NFTs, you will see that in April it was around $1,500. When you compare that to January, you’ll see that it was around $4,000. If you look at the data sources, you will see that daily sales have decreased from $160 million to $30 million. This just shows that things are changing.
Casinos are slowing down with NFT adoption
At one point, many casinos adopted NFTs, but right now things seem to be slowing down quite a bit. Casinos are not as focused on NFTs and this is the same for the gaming industry as well. If you take a look at the latest casino bonuses, you will soon discover that many of them are offered by sites that do not have NFT adoption at all, which is very interesting.
Marketing guru
The person who was able to predict the 2008 crash is now at it again. He is an author and he is also an expert statistician. He sent out a tweet saying that the NFT world is going to crack and the ever increasing interest rates are going to expose some of the cracks.
Celebrities
Paris Hilton and Jimmy Fallon once boasted of their collection of NFTs. Twitter then rioted and Quinton Reviews released a statement saying that if anyone is going to kill the traction that NFTs are getting right now, it’s these two people. Of course, no one knows if they had any real influence with this, but one thing is for sure, they did the NFT world no favors at all.
Dorsey’s failure
Jack Dorsey who is the NFT for the Twitter creator released a tweet and it caused a tank in value. The tweet itself was able to convert to an NFT last year, and people were surprised to see that the bidding generally went up to $2.9 million. The buyer put it on the market, suspecting it would reach $50 million, but offers soon stumbled, with people unwilling to offer more than a few million.
Lowest weekly volume
Another thing to note is that the NFTS is now experiencing the lowest weekly volume around. If you look at world affairs, then you will see that the cryptocurrency market has taken a huge hit. With that, the NFT market seems to be taking its fair share of the damage.
Sure, trading volume in general is such a critical metric, but at the end of the day, this helps indicate the health of the market, and it has been falling rapidly. This is not good to say the least. Especially when you look at what trading volume actually refers to. Trading volume refers to the amount of NFT transactions in general that have been executed on the blockchain.
As the volume increases, more of the NFT assets are traded, and this indicates that there is going to be an increase in interest in the asset. The overall market is very volatile, that’s for sure. For this reason, it is very difficult to think of a clear reason for the drop in trading volume.
During a very similar trend in NFTs last June, Geoff Osler, who is the co-founder of the app S!NG, has gone so far as to point out that there is a lot of pent-up demand right now and that this has driven up the cost of collectibles generally. Regardless, things seem to be cooling down with the whole NFT world and companies are pulling back as well. Who knows what the future holds, but right now it seems more needs to be done to ensure the NFT world is stabilized before it plummets too much.
