The NFT hype apparently died as daily sales in June 2022 fell to a one-year low

by · July 7, 2022

Nonfungible tokens (NFTs) took a central stage in the year 2021 when artists, influencers, A-list celebrities and the sports industry finally came across a banner engagement tool that enabled the general public to monetize their success. However, the hype surrounding NFT failed to stand on its own, as sales plunged to a year’s lowest level in the middle of the ruthless bear market in 2022.

The NFT boom, which began in early 2021, maintained its glory until May 2022 – backed by a healthy and bullish crypto ecosystem and positive investor sentiment. However, the Bitcoin (BTC) struggle to maintain its high prices over time has had a negative impact on the entire crypto ecosystem.

Number of daily NFT sales between June 2021 and June 2022. Source: NonFungible

The NFT ecosystem recorded its worst performance of the year in June 2022 when the total number of daily sales dropped to approximately 19,000 with an estimated value of $ 13.8 million – a figure that was recorded back in June 2021.

Last year, however, daily NFT sales of a similar amount were considered impressive as the nascent ecosystem saw mainstream implementations across different use cases.

NFT market value and trading volume. Source: NFTGo

According to data from nonfungible.com, the NFT ecosystem witnessed the highest daily sales of 224,768 NFTs on September 24, 2021, worth $ 78.3 million. However, the largest sale measured in dollar terms took place on May 1, 2022, when 118,577 NFTs were sold in one day for $ 780.4 million.

Some of the key factors that negatively affect the hype around NFTs are falling Ether prices (ETH), lack of demand from the secondary market and unrealistic gas taxes. As a result, over the past three months, the NFT market value has fallen by almost 40% while losing over 66% of trading volume, as shown by data from NFTGo.

Related: NFTs that appear on Facebook, cross-mail with Instagram as the Meta Web3 expansion continues

In the midst of the bear market, crypto-entrepreneurs, including Changpeng “CZ” Zhao, are helping governments explore NFT use cases for ID residents. Social media giant Meta’s Facebook also recently announced plans to support NFTs for creators.

A Meta spokesperson revealed that the rollout of NFTs on Facebook would be gradual, and began with selected creators in the United States.