The NFT speculative market is said to be in its worst state ever, with very few active participants. Is the NFT bubble bursting?
Things have never been worse for non-fungible tokens (NFTs), at least when it comes to their trading activity. Is the era of profit-driven NFT trading coming to an end? And do the Web3 community and its companies need to rethink their approach to digital collections?
The NFT market is only a fraction of what it was last year
According to data from Dune, in the past seven days, only 190 unique ETH wallet addresses have bought or sold an NFT. This number is significantly lower compared to over 181,000 unique ETH wallet addresses recorded almost a year ago. This is seen as the first sign that the NFT bubble has burst.
The ones suffering the worst headaches are profile picture “collectibles” (PFPs) with little to no utility. In a challenging time, the market seemed to reach its peak after Paris Hilton appeared on Jimmy Fallon to compare their Bored Apes. Since then, everything has been downhill.
Applying NFTs to gaming or digital identity has long been seen as a technology development field. However, there is a growing consensus (if not already formed) that the speculative boom era of NFT trading on a large scale has come to an end. The NFT bubble has truly burst!
Modeo Cheng, the head of game design at Curio Research, believes that NFTs will find their proper place as they demonstrate utility in games.
Brian D. Evans, CEO and founder of BDE Ventures, a consulting and Web3 studio, is surprised by the downturn happening in a relatively healthy period for other cryptocurrencies.