The Future. While the most popular cryptocurrencies have stabilized in value since their crash in 2022, NFTs have plummeted in value ever since. Supporters of the technology argue NFTs can help creators support themselves, but so far, their value has mostly depended on hype. If no one can prove they’re worth more than that, NFTs may soon be gone for good.
Now Faring Terribly
NFTs (and all things related to them) are facing hard times.
- In the past 18 months, NFTs’ monthly trading volume dropped 81%, and monthly sales declined 61%.
- NFT marketplaces and media platforms are dying, too. Recur, the marketplace backed by billionaire Steve Cohen, and the NFT social media platform, Nifty, have both closed, while Blur, a popular NFT marketplace, has lost 96% of its sales volume since June.
- Even the most successful creators have struggled ever since OpenSea made the payment of royalties on secondary sales optional.
The long way down
This slump could become death. The SEC just took its first action against NFT vendors, claiming NFTs are really unregistered securities. That crackdown could crash the party for good. Even auction houses and NFT vendors are abandoning the term “NFTs” in favor of “digital art” because that label isn’t contaminated by association with scams.
Bye bye, Bored Apes.