According to the Pymnts site, the number of active NFT wallets has also decreased by around 88%, with 14,000 active wallets in the last week of April 2022, compared to 119,000 in November 2021.
Rising interest rates have put a damper on the riskiest bets in the financial markets. And the NFT are highly speculative.
The Nasdaq Composite, which is a heavily tech-focused index, had hit highs in November. However, it has fallen 32% this year, while Bitcoin has fallen 56%.
Investors have had to take more defensive positions as central bank helicopter money policies come to an end, according to the research.
Many NFT owners have discovered that their investments are not doing as well as when they were purchased.
For example, a bidder purchased an animated NFT depicting Snoop Dogg in an astronaut suit (Doggy #4292) which fetched around $32,000. The NFT is currently on the market for $9 million (June 17, 2022). However, when we checked on OpenSea, the highest buyer bid for the NFT was around $1000!
Can the NFT market rebound?
According to an article by Creativebloq, many NFTs are on the brink of bursting a dot.com-like bubble in the late 1990s. However, with new use cases like NFT profile pictures on social networks, NFT are at the end of the episode and at the beginning of a short story.
As was the case with blockchain technology in 2018, the next boom could be one that really sees this technology emerge as something revolutionary, and not just speculative.
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