NFT sales crash 92%, but is this the full story?

News broke this week of an NFT crash – with sales down 92% according to some data. The incredible rise of non-fungible tokens in the last year, spurred on by lockdowns no doubt, drove a fevered excitement for this new art, but it looks like the fun is over. Or is it? What’s the full story behind this recent news?

Let’s remember non-fungible tokens are digital files stored on a blockchain that create rarity. You can read more in our guide, What are NFTs? or have a go at creating an NFT for free in our tutorial. We have NFT tips for beginners to, to learn the basics.

Back to that headline news. The downturn as reported by crypto data site NonFungible shows a transaction volume decrease of 47% in Q1 of this year compared to the previous quarter. Sorry to bore you with figures, but this is ultimately a sign that reality is bearing down on a tech and market that has been heavy on hype and short of use for some time.

NFT crash, seen in a chart

NFT sales look to have been dropping slowly since last year, though you can clearly see some projects still have impact (Image credit: nonfungible)

But the idea that NFTs are over is likely an overstated belief. For example, the Moonbirds NFT project added $500 million worth of trading volume, while the Solana blockchain saw a 91% month-on-month increase, recording nearly $300 million in NFT trading.

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