NFTs, or non-fungible tokens, attracted a lot of interest in the cryptocurrency market in 2021 as sales topped billions of dollars and they attracted investors, celebrities, and artists.
The daily sales volume of NFTs, however, has decreased significantly since its high in January 2022, by about 90%.
As a result, people have become worried about the future of NFTs and whether the excitement around them has disappeared for good.
April in 2023 has proven to be especially bad for the NFt market.
Recent data indicates that throughout the month there were more sellers than there were purchasers. For example, on April 26 there were only 7,907 buyers and 8,641 people looking to sell their NFTs.
April, according to collected data, has been an especially rough one for the NFT market.
Things are so bad, that statistics show that there hasn't been a single day in the month, where the number of sellers on the market hasn't outnumbered the number of buyers.
This means that more people are selling NFTs than buying, indicating a potential lack of demand that may be concerning for those planning to sell their NFTs soon.
Data from the analytics website NFTGo shows that on April 26, there were only 7,907 purchasers while 8,641 people were trying to sell their NFTs.
With just 5,893 purchasers, the NFT market touched its second-lowest point in the previous year a few days earlier, on April 19. This was somewhat higher than the lowest recorded day in the previous year, which was June 18, 2022, with 5,343 buyers.
Unlike the crypto sector, the U.S. banking crisis had a significant negative influence on the NFT market and according to earlier statistics, the fall of Silicon Valley Bank [SVB] also led to a decrease in NFT trading volumes, just like it did for the cryptocurrency market.
According to DappRadar, the NFT transaction volumes reached a low of $38 million on March 12. This decrease on March 10 sent the transaction volumes from a high of $74 million to a low of $68 million.
According to DappRadar, the trading volume of the NFT market has decreased by 51% in just one week from the beginning of March.
In terms of NFTs, Ethereum, one of the most well-known blockchains, also took a backseat over the last few months. Recent statistics showed that early this week, Cardano, Polygon, and Solana temporarily surpassed Ethereum in terms of NFT sales. Despite being brief, this highlighted the rise of alternative networks to Ethereum. This news was partially gloomy because the Ethereum blockchain is the undisputed leader in terms of popularity for issuing these tokens.
On April 26, Canary Labs co-founder Ovie Faruq has also called attention to the NFT crisis, saying in a tweet that the NFT market was "not functioning" at the moment.
On March 10, NFT trade volumes ranged from $68 million to $74 million before the SVB bank's failure. On March 12, though, they dropped to $36 million.
Between March 9 and March 11, the daily NFT sales figure fell further by 27.9%, contributing to the decline.
The top six NFT markets experienced an increase in wash trading in February for the fourth consecutive month, with a total volume of $580 million, according to a CoinGecko analysis released on March 20.
The market saw a 126% increase over the $250 million in volume the previous month, according to the study, which attributed the surge to the NFT sector's general rebound.
Considering both historical and recent statistics, NFTs appear to be losing popularity.
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