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