Like with everything in crypto, if an outsider questions the legitimacy and longevity of crypto, it’s bound to get a response from the crypto community. Many in the community claim that NFTs are not dead and that we are just in the beginning of NFT adoption.
Twitter boomers this week: NFT’s are dead!— gmoney.eth (@gmoneyNFT) June 6, 2021
Me this weekend: pic.twitter.com/hSgzrxskzi
The one argument that keeps coming up from loud voices in the community is the comparison of crypto and NFTs to the adoption of the internet. They draw parallels between these two and say that NFTs are the next big thing.
I think this is also what the world said to the Internet many years ago, anyway, we have some work to do to dispel the environmental concerns around #NFTs. We cannot change the opinions of some but we can continue to build and provide real use cases for tokenised assets https://t.co/TIuMWHp5bd pic.twitter.com/LYaQ6tNhxk— Pranksy 📦 (@pranksyNFT) June 3, 2021
Let’s explore the data to figure out if NFTs are dead.
Let’s first start with the number of active wallets. There was a peak in March in the number of unique wallets, with around a 45% drop since then. This chart suggests fewer people are buying NFTs than the explosion that was seen in March.
Fewer people buying NFTs translates to a smaller number of sales. This chart shows there’s also been a drop in the number of NFT sales.
Based on the data, it’s hard to make the argument that NFTs are dead. Sure, NFT sales are down from the explosion in March, but they are still higher than sales numbers from February. The main contributors to NFT sales decline are high gas fees, high ETH prices, and less media attention.
High gas prices and fees seem to have affected the amount of new adopting NFTs. It discouraged new and small investors from jumping into the market. It doesn’t help that ETH shot up in value. Many people started to hodl their ETH rather than spending because they could make more money from just hodling than flipping an NFT. ETH just became too valuable to use. Also, NFTs became a sort of fad in March which led to the explosion we saw. The mainstream media covered the explosion and got more people into it, but people’s attention went elsewhere once they stopped.
NFTs are not dead. We are barely scratching the surface in the possibilities of what NFTs can do. It is also easy to forget that Binance is coming out with its own NFT marketplace, allowing more people to enter the space. NFTs have a bright future ahead; it’s exciting to see what will happen next.
But, the one good thing that came out about the claim that NFTs are dead is this bop.