The number of non-fungible tokens (NFT) that were traded each month fell to its lowest level in 16 months, according to data from CryptoSlam. People in the market kept saying that digital collectibles wouldn’t go away, but this did. By September, CryptoSlam’s numbers showed that NFT sales had dropped to about $550 million. Even though it’s already October and more than half of the month has gone by, sales have not yet reached $190 million. If you want to invest in bitcoins you can check it here.
From what CryptoSlam has said, the number of NFT sales is about the same as in May and June of 2021. Similarly, the average price of a transaction has dropped to about $81. Last year at this time, it was just below $500, so this is a significant change. Numbers show that most NFTs were sold at the beginning of 2022.
From what we know, there were more than 1.07 million customers and more than 860,000 vendors in January. The total value of all the deals was more than $4.7 billion. Will we never hear anything else about NFTs? In the past ten months, the value of many non-financial assets (NFAs) has decreased, sometimes by a lot.
Why are NFTs dead
They don’t help the environment
People don’t usually like NFTs because they release much carbon dioxide into the air. But if you don’t know what’s going on, it might seem like a very strange thing to do.
First, non-fungible tokens are just tokens that are stored on a blockchain. Even though this information can be stored on any blockchain, most of it is stored on the Ethereum network.
Most of the time, the way Ethereum works is fine. Ether, the currency of the Ethereum network, is now the second-biggest cryptocurrency on the market after Bitcoin. This is happening for a good reason. But it sounds like a great idea if you don’t think about how it will affect the environment.
This is good for the health of the blockchain, but it uses a lot of power. People say that Bitcoin uses more energy than the whole country of Argentina. If this is true, Ethereum uses as much electricity as the Netherlands. Every year, Ethereum uses about 112 terawatt hours of electricity. This is very bad for the ecosystem, and the fact that NFTs make the problem worse makes it even worse.
The market doesn’t have any rules
Non-fungible tokens have been used in various scams, from “pump and dump” schemes to outright thefts and everything in between. If you lose the money you worked hard for, you are on your own, and the only way to get help is to involve the police and the legal system.
The government can’t stop scams, and if you lose the money you worked hard for, you can’t get help. If you don’t want to lose thousands of dollars to a con artist, you should give an NFT a lot of thought before you invest in it.
Silk Road used to be a market on the dark web, but it no longer exists. Bitcoin could be used to pay for it. There are still scams involving Bitcoin, and you can’t get your money back most of the time.
It’s unclear what the market thinks of a token that looks like a bored ape and can’t be traded.
An excellent place to invest differs from a speculative market because its value can stay the same or even go up. As fewer and fewer people want to buy NFTs, their prices seem to decrease. For example, in June 2022, the floor price of Bored Apes fell below $100,000. Many people thought that these NFTs were suitable investments. While some have been able to hold on through the bear market, many others are upset that the value of their investment hasn’t been keeping up, and they have a good reason to be.
Intellectual property rights have rules, but many people don’t follow them
This is a more detailed version of “It’s a free market,” but it’s important enough to talk about on its own. When used right, non-fiduciary trusts (NFTs) can help creators keep track of the rights to what they’ve made. Because of this, most of the time, they are sold.