In 2021, the non-fungible token (NFT) ecosystem grew massively, and data shows that 98,832 NFT sales were made in over 32,000 active wallets in the last month. Monthly statistics show NFT sales totaled $ 272 million. However, a recent report shows that the NFT market is gradually “cooling” as NFT volumes have declined. However, another study suggests that the NFT market could double by fall.
Report Finds Cooling Period in NFT Markets
NFTs have become a huge hit in 2021 and the market continues to show that people are buying non-fungible token collectibles. Market history data from nonfungible.com shows more than 15,000 sales of NFTs valued at over $ 15 million in the past seven days. This year has shown that almost everyone is trying to use NFTs to raise funds, and the NFT trend has spread to world-famous artists and celebrities.
However, a recent report by Sophie Kiderlin, an employee of Markets Insider, states that the NFT market is “starting to cool as both prices and volumes fall”. Kiderlin points out that markets plummeted following the infamous $ 69 million sale of Beeple. “Art NFT sales volume was down nearly 42%, making this sector the biggest losses. During the same period, prices fell by 40.5%. That means a drop in sales from over $ 71 million to $ 41.5 million as of today, ”the report said.
Invezz NFT Study Disagrees With Cooling Sense Says “No Signs Of Bubble Bursting” And “Market To Double By October”
Kiderlin’s editorial goes on to say that the only sector in the NFT space that has performed well is “virtual land and digital real estate” within the metaverse. According to a recent report by Invezz Newsdesk on Thursday, the Markets Insider contributor’s data could be short-sighted.
– CryptoPunks Bot (@cryptopunksbot) May 18, 2021
This is a stark contrast as the study, authored by Invezz, states that there are “no signs of the bubble bursting” and the “NFT market” [is] double by October. “The forecast that Invess provides in its latest study predicts that NFT market capitalization will” increase from $ 338 million in 2020 to $ 470 million in 2021 “.
The Invezz study acknowledges that the NFT sector saw a decline in volume last April. “Is the NFT market a giant bubble that will burst?” ask the authors of the Invezz study. “The answer depends on who you ask. The total trading volume of NFTs fell to $ 68 million in April, leading some to conclude that the bubble has already burst. Some believe the price hike is pure tech speculation with little value or benefit behind the products being sold. Some analysts say a market correction was inevitable after the March boom. “The Invezz authors conclude by saying:
On the other hand, it’s far too early to conclude whether April data shows that interest has cooled completely. A month of data is unlikely to suggest longer-term trends.
It’s not the first time skeptics have suspected the NFT bubble is about to burst, and the NFT ecosystem has been dubbed the “house of cards”. There is also an increase in NFT-related scams as the trend has grown exponentially. Despite this criticism, the Invezz study doesn’t see major corrections affecting the NFT economy, like the recent downturns in BTC and ETH.
The Invezz study authors concluded by adding that the NFT market appears to be resistant to the forces that have recently seen a price correction in cryptocurrencies like Bitcoin and Ethereum. Thanks to the unique combination of innovative technology and creative freedom, the demand for NFTs is showing no signs of slowing down. “
What do you think of a slowdown in the NFT market? Do you see a slowdown or do you agree with this week’s Invezz study of doubling NFT markets? Let us know what you think on this matter in the comments section below.
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