When the non-fungible tokens or NFTs invaded the market, every investor thought that it was a fast way to grow their profit. These units of data come in many forms such as artworks, programming codes, digital sketches, and more.

In recent years, we have seen how their popularity has skyrocketed, but there are also times that their value unexpectedly plunged. According to the latest data, the sales for NFTs have plummeted to 92% since September 2021.

Could this mean that the NFT market is now on the verge of caving in?

NFTs Saw a Sharp Drop in Sales

Aside from the sudden drop in NFT sales last year, UK-based news outlet The Independent reports that crypto wallets are also affected by the changes.

According to the article, they also plunged to 88%. There's also a statement that includes that the "NFT market is collapsing."

It should be noted that the NFT hype is global since many tend to search about the tokens on the internet.

It's evident in the latest Google Trends data that the search interest of the people when it comes to this topic is not the same anymore. The data suggests that there's been an 89% decrease in search interest since January of this year.

However, Tom Schmidt, a popular investor on Twitter, has recently posted Dune's analytics about NFTs. The graph shows that the drop in NFT sales appears to be lighter than expected.

come on, man pic.twitter.com/CTJFldAHNk

— Tom Schmidt ＞|＜ (@tomhschmidt) May 3, 2022

 

NFT Involvement in Government

While some governments have opposed the idea of supporting the non-fungible tokens, the UK government expressed its desire to back up NFTs.

The Independent includes in its report that the authorities consider it as "an emblem of the forward-looking approach" that they want to explore.

Moving forward, we have seen how former Twitter founder Jack Dorsey impacted the NFT trend last April. When he spearheaded the auction for his very first tweet on the platform, many people expected that the value would boom over time. However, there was a clear decline in the bid at that time.

The initial price for the NFT tweet has been sitting at $2.9 million in 2021. However, the April auction only managed to collect $280 as the highest bid in the event.

The value of cryptocurrencies and NFTs could also be affected by the posts of popular personalities. One notable figure in the field of investment is Elon Musk who has currently acquired Twitter's shares.

For investors, his tweet could make or break the price of the tokens. That's why some people tend to pay attention to his every post.

Speaking of NFTS, the Tesla boss changed his Twitter display picture to a collection of BAYC (Bored Ape Yacht Club) NFTs. Then, he later tweeted out something about them, citing that they are kind of "fungible."

Related Article: Bored Yacht Club Logs "Largest NFT Mint in History", Disrupts Ethereum Blockchain

Investing in NFTs

Everyone can invest in NFTs, but people must be mindful of the risk before jumping into this investment. Investopedia reports that diving into this trend has both pros and cons.

The pros include accessibility, blockchain ownership, and more. Meanwhile, the cons are as follows: generating NFTs requires high energy, requiring to own Ether, and considering NFTs as a non-asset class.

Read Also: 32-Year-Old NFT Seller Earns More than $1 Million on his Metaverse Artwork in Just 9 Months

This article is owned by Tech Times

Written by Joseph Henry