HOT: Is a 50% drop in global NFT sales a cause for concern?
The emergence of cryptocurrencies and blockchain technology in the last two years has opened up new opportunities for investors. Investors and innovators rushed to the NFT Marketplace, catapulting the industry to new heights in a short period.
But the NFT industry looks to be slowing or perhaps correcting. This has caused many blue-chip NFT investors to hunt for other opportunities and ways to use their holdings.
In January, CryptoSlam, an NFT data aggregator, reported worldwide NFT sales of $4.6 billion. By the end of March, it had dropped to $2.4 billion. Several NFT owners have sold their digital assets due to the crisis. But not everyone is disillusioned. Some, like Bored Ape Yacht Club, nevertheless believe in NFT and are sticking onto their investments — up 199.6% according to CyptoSlam.
This indicates a rise in NFT lending. Owners of NFTs seem to demand liquidity. Domain specialists advise them to invest that money in other assets. They also said that adding to any asset is natural.
It’s logical to lend NFTs for liquidity and capital efficiency. For example, Arcade NFT allows owners to acquire loans by offering their digital collectibles as security instead of a home or vehicle.
Experts think the fall in NFT sales is due to individuals realizing what they can do with their non-fungible tokens. However, numerous NFTs purchased at exorbitant rates during the market bubble are struggling to sell.
NFTs are a kind of non-replicable digital asset. It may be a picture, video, audio, or text file.
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