The boom for NFT, certificates of ownership of a unique digital piece that are sold with cryptocurrencies, appears to be declining with no hint of recovery. The site specialized in digital currencies Protos notes that non-fungible token sales fell 90% in the last month.
Although NFTs are not creatures that emerged in 2021, the move achieved great visibility when the digital artwork was auctioned under this modality in March. Everydays: the fist 5000 daysby Beeple for $ 69 million. The bidding continued and grew to unsuspected limits: Jack Dorsey’s first tweet, numerous digital works, viral videos and even memes were sold as NFT.
On May 3 the nft fashion it peaked, with $ 102 million in sales that day. That week was hectic, with a total of 170 million in sales. Now, to account for the collapse, during the last week there were movements for just over 19 million dollars, which translates into a month-to-month fall of around 90%.
That decline runs counter to the enthusiasm of auction house Sotheby’s, which recently said that NFTs represent “a new flowering of human creativity.”
As we pointed out in this note from TN Tecno in which we reviewed a series of unusual NFTs that sold for hundreds of thousands of dollars, many warned that this move is a bubble that would soon burst. Is that prediction starting to come true?
For the unsuspecting, non-fungible tokens inject new air into collectibles by allowing you to own a certificate of authenticity for a unique digital item. As we explain here when reviewing this phenomenon in detail, they are a kind of property title to an element that, although intangible, has a certain value and is paid for with cryptocurrencies, usually with the currency ether.
NFT: boom and bubble
In addition to the aforementioned percentage that accounts for the drop in sales, the report notes that the number of users actively buying and selling non-fungible tokens also decreased, in this case by 70%. As of Tuesday this week, there were roughly 3,900 crypto wallets in activity, compared to more than 12,000 at the beginning of May.
As note New York PostNews of the crash comes on the same day that Sotheby’s launches a full week-long auction of the world’s first known NFT, a simple red, blue and pink image from 2014.