Interest in digital collectibles in the form of NFTs is declining sharply amid a general fall in the cryptocurrency market.
Investor interest in non-fungible tokens (NFTs) has renewed its low in May 2022. According to Google Trends, the number of search queries in the context of NFTs dropped to 17 points by the end of May.
Google Trends statistics reflect global search query trends and rank results from 0 to 100 points, where scores above 50 indicate global interest and scores below 50 show declining interest.
The search term “NFT” had a score of 100 in January, and as of May 27, 2022, that number had dropped to 17. A drop below 50 was recorded on February 14, 2022, and the global interest in NFTs continued to decline, falling to below 25 in April.
Decreased investor interest in digital collectibles is also evidenced by an analysis of data on monthly trading volumes at NFT marketplaces. So, according to The Block, the aggregate volume of the major NFT marketplaces has declined by 75% since the beginning of the year. In January 2022, the monthly trading volume was at $16.54 billion, and in May, it dropped to $3.76 billion.
As for popular collections of non-fungible tokens, their analysis also indicates a decline in investment interest. According to CryptoSlam, the daily token sales volume of the popular NFT monkey collection Bored Ape Yacht Club (BAYC) was $3 million on May 29, 2022, down almost 90% from just May 4, 2022, when the BAYC trading volume was about $29 million per day.
The popular CryptoPunks collection lost about 80% of its daily sales volume in May 2022, which is just over $350,000 as of May 29, 2022.
The sales of Moonbirds, from which the hacker recently managed to steal 29 NFTs, in April 2022 were a staggering $172 million for the collection’s launch, but had fallen to $390,000 by May 29, 2022.
Tokens from the popular P2E game Axie Infinity posted daily sales of $109,000 on May 29, 2022, down 97% from January 2022.
Recall that the collapse in NFT token prices was the most significant in May 2022. Analysts attribute this trend to a general slump in the cryptocurrency market. If the market for digital assets fails to recover in the near future, the predicted growth trend of the NFT market will not be justified.
