Why NFT Projects Are Witnessing a Straight Decline?

The non-fungible tokens (NFTs) have been witnessing a hike during most of the previous year and it seemed that a great change will happen across the globe. Nonetheless, during this year, the whole industry of NFTs has witnessed an enormous collapse as a 92% decline was witnessed in this market during September 2021 as well as April 2022.

NFTs Consistently Steps Down Amid the Crypto Winter

Such a situation was not good for a lot of investors and the NFT holders even though a few of the blue-chip non-fungible tokens have been performing pretty well in even recent times. As per the Wall Street Journal’s data regarding the sales of the NFTs, a huge decline took place bringing it from 225,000 (daily average) to only 19,000 and this decline didn’t stop there. Apart from that, the data provided by Google Trends expresses an enormous decay – after touching its peak at 89 during January this year – to dropping below only 25.

In the same vein, the transaction volume of NFTs has also lowered according to the data, showing a more than 50% decrease in NFT-related activities. The market of non-fungible tokens has come to a very crucial point as the people who were crazy about purchasing NFTs and had invested high amounts in this industry are going through a difficult period with a significant decrease in their value.

Prominent NFT Venues Find It Difficult to Keep Their Prestige

A few months back, Elon Musk – the CEO of Tesla (also known as a prominent advocate of cryptocurrency) – additionally rejected the concept of non-fungible tokens. In general, the trading of NFTs has become very slow and a great loss is being gone through by several investors throughout the NFT space. A recent example in this respect is that of STEPN, the platform that recently saw a downfall.

This occurred after the things like the downtime of the Solana network and the profitability as well as user growth of the platform dropped. A prominent reason for this has been labeled as the faulty tokenomics plan of the venue. In addition to the NFT market, the space of Metaverse gaming is also not showing good results. In such a scenario, the experts see very fewer chances of a positive change any time soon. Nevertheless, the future performance of these fields is yet to be seen.