After seeing an unprecedented hype especially in the first quarter of 2021, there is now a noticeable decline in the interest of non-fungible tokens (NFTs).
March 13, 2021, seemed to be the climax for the NFTs as google queries between 7th and 13th worldwide went to an all-time high of 100 on Google trends. And after that, the queries have continually slid to stand at 87 queries at the time of publishing this post.
According to the searches on Google, worldwide, most of those interested in the NFTs are residents of the US, China, Singapore, Canada, and South Korea.
According to the data from Google Trends, the most popular NFT queries are about NFT marketplace, NFT coin, buy NFT, what is NFT and NFT price. These types of queries show that a lot of people are still looking to understand these tokens that have taken the cryptocurrency market by storm with stories of beneficiaries making millions in a matter of minutes if not seconds.
Popular NFT marketplaces where creators sell their NFTs
- Myth Market
- NBA Top Shot
- Enjin Marketplace
- Async Art
Declining sales on top NFT marketplaces
A marketplace like NBA Top Shot has seen a continued decline as seen in their market evaluation page, the evaluate.market.
The general sales in US dollars and the number of active NFTs wallets have also seen a sharp decline in recent days according to data from nonfungible.com.
What could be causing the decline in NFTs popularity – could it be that the market is overcrowded?
Every market follows the supply and demand law. And according to the author of “The Wisdom of Crowds,” James Surowiecki, who recently published an article about oversupply in the NFT industry stated in the title of the article that “An Oversupply of NFTs Is Going to Kill the Golden Goose,” and “the signs of oversupply are easy to see.”
But from the data obtained from the various sources mentioned above, it does not require an expert to figure out that there is something seriously wrong with the NFTs market and if the trend continues, the industry could come crashing down.
There are serious issues with the NFTs market since there is typically nobody in control and oversupply is an immense risk. Anyone can create an NFT in minutes and they do not get discarded but rather continue to accumulate in the market.