Are NFT sales and interest really declining? † Xbox One

The NFT market caused a stir at the end of last year and its entry into the video game world did not really please players. It was Ubisoft in particular that received criticism from much of the public when it launched its Quartz platform last December and distributed the first NFTs of the publisher linked to the game Ghost Recon: Breakpoint. Today, the breath seems to have decreased, while other bells ringing claim the opposite. Finally, what is it actually?

Also read: NFT: what is it? What for in video games? Complete file!

The NFT market is falling according to the Wall Street Journal

In an article published yesterday by the Wall Street Journal based on data from the site NonFungible, we learn that NFT sales have fallen this week to a daily average of about 19,000, from 225,000 in September. At the same time, the number of active wallets dropped from 119,000 in November to around 14,000 last week; 88% down.

The Wall Street Journal is clear, NFT sales are stagnating or even declining, and the paper wonders if this is finally the end of NFTs. The article concludes by stating that “the NFT market is collapsing”.

Critics of the subject who claim the fad is over also rely on data from Google Trends, and more specifically on searches related to the term “NFT.” According to this public data, searches peaked in January and have since fallen by about 80%. But does this really show disinterest? Indeed, this spike could be due to an increase in research on this topic by people who want to understand the phenomenon and what it is all about. Once informed about what an NFT is, it’s hard to imagine the same people continuing to search for the term on a regular basis. At the moment it is difficult to draw a conclusion based on this data alone.

Figures disputed by other data sources

Nevertheless, if the Wall Street Journal is a globally recognized medium, it appears that the data on which the recent report on NFTs is based is inaccurate, or at the very least incomplete. Indeed, several industry players are claiming the opposite, including an engineer from Nansen, a blockchain analytics platform. One of the examples is neither more nor less than that of the famous monkeys whose exchange in value has clearly increased since the beginning of the year.

Other players indicate that unlike the one on which the Wall Street Journal is based, data is also accessible through Dune Analytics, an Ethereum-centric platform that makes crypto data accessible. This takes into account data from various NFT platforms such as OpenSea, Rarible, Foundation or even LarvaLabs while accusing NonFungible of lacking data.

Consolidated data from Dune Analytics shows that the number of NFT users is increasing, as is the value of transactions worldwide. No data points to a drastic decline in the sector, on the contrary, as on May 1, 2022, no less than $500 million in NFT was traded on the Open Sea platform alone, a record.

Data that should nevertheless be put into perspective, as presented by the account NFT Statistics At the end of April, it was apparently the biggest projects like Bored Ape Yacht Club (BAYC) that took over coverage, while the majority of the others were stable or slightly down. In any case, there’s little point in jumping to conclusions based on the failed sales of a few individual topics, such as Jack Dorsey’s tweet, until you analyze the market as a whole.

The NFT market is still far too new to predict anything

Summarizing the data available to date, it is far too early to draw conclusions about the success or failure of NFTs. The arrival of these digital objects is very recent, poorly regulated, and the various video game players are still looking for a winning formula to use them intelligently.

Last year, Ubisoft released a series of NFTs for the game Ghost Recon, before shutting down the game’s servers a few months later. Success was not there, but the company assured that NFTs would return in other games. In late April, the publisher formalized a new arena game called Project Q, while stating that it has no plans to integrate NFTs into it to date.

Learn more about NFTs in video games

Leave a Comment