Strong optimism dominated the NFT market in 2021. Thus, the Collectibles sub-sector led the charge. However, the fall in quantities was noticeable by year’s end, and it carried over into the first quarter of 2022.
The complexity of the current geopolitical environment is to blame for this. But, it is not the whole explanation. According to StockApps.com, NFT trading volume recorded a 41% drop in Q2 2022.
Speaking on the data, Edith Reads, StockApps analyst, said. “Lately, the NFT market has experienced a bearish nature. The downtrend in trade volume is due to the bad crypto market. Most investors are afraid to take risks with crypto assets. NFT is a casualty. Yet, the NFT market is likely to make a comeback. Expect growth as things begin to shape up and the crypto market is taking steps.”
The NFT Market is Leveling Out
Profitability in the NFT markets has changed significantly. This is the most notable development of the past six months. The year 2022 is more challenging for NFT profitability than 2021. Yet, we may continue to have faith in the NFT sector.
Q1 2022 saw a decline in asset, USD, and active wallet volume compared to Q4 2021. Still, Q2 2020 showed auspicious volume figures compared to Q1 2021. Keep in mind that this market was established after the 2017 ICO era and is, as a result, highly resistant to fluctuations in the crypto market.
Those who invested in NFT in 2021 due to its hyper-growth and would continue at the same pace will feel conflicted about the decision. But we think with all our hearts that a new era is beginning.
NFTs Have Not Yet Been Put To Rest
Even considering only the past quarter, it is possible to acknowledge at least that the market has undergone significant shifts. The uncertainty around NFTs appears to have subsided, at least for the time being. The NFTs are no longer in the public eye.
The possibility of making a profit exists throughout bull markets. However, the actual value of an investment is typically created during bear markets.
NFTs represent the pinnacle of technological progress in the digital realm. It is a fantastic investment platform, and its prospects are bright. With blockchain and NFT, the digital world is secure. Besides, it is a tremendous investment opportunity for crypto, digital lovers, and businesses.