After the “NFT madness”, the market comes to its senses

Bored Ape Yacht Club NFTs, built using algorithms on the Ethereum blockchain. Credit: Bored Ape Yacht Club

DECRYPTION – After the speculative drift of some of the non-fungible tokens, supply and demand are refocusing on the notion of “utility”.

The bubble has burst. The era of exorbitant prices reached by some non-fungible tokens (NFTs) until early 2022 seems well and truly over. Between the second and third quarters, volumes traded in dollars fell 75%, according to the latest report from analyst firm NonFungible.com. Between July and September, the overall volume reached $1.7 billion, compared to $10 billion in the first quarter. Based on a slightly different scope and data, Dune Analytics comes to a similar conclusion: transaction amounts have fallen by 97% since January.

The buying fever that gripped NFT collectors in 2021 led to an influx of careless speculators and the proliferation of dubious and worthless projects. The fall of the cryptocurrency market, the aversion to risky investments and the discovery of certain dishonest practices by a few buy-sell platforms have scared users away…

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