According to new data, sales of non-fungible Tokens (NFTs) have fallen up to 92% since September. Google trends reported that internet searches for NFTs peaked in January 2022 and have since dropped off by 80%. The decline in interest as well as valuation for NFTs comes at the same time as interest rates rise across the globe, decreasing the willingness of consumers to take risky financial bets.
A market crash in NFTs calls into question this first wave of NFTs and their ties to cryptocurrency. The value proposition for NFTs is still unclear, and perhaps this will become more defined during the second wave. Perhaps new NFTs will be more tangibly linked with real or digital world benefits. And it remains to be seen if NFTs can be used systemically for social good and sustainability purposes.