It’s just a phase: Why people lose interest in NFTs
I’ve been seeing less NFT chatter on my social-interaction sites lately. I barely hear up-to-date news from the renowned crypto publication and blog sites like Cointelegraph and Stockhead, aside from Ukraine’s ongoing donation drive through NFT auctions. In fact, there are several controversies concerning NFTs but none of them really bother me. Investors seem to have lost fad in the NFT-raze since the constant bear market started in January 2022. Perhaps, the market standing has nothing to do with the sudden decline of NFTs, but the mere fact that NFTs are not really meant to stay forever on top.
I can still remember how NFTs became one of the most undisputed digital trends in 2021. It was heavily supported by fans in different fields — music, entertainment, sports, etc. Plus the fact that it was backed up by influencers and celebrities. The list of personalities who endorsed NFTs on their social media accounts are quite long. Back then, they swore to pay thousands to millions for an ownership of jpeg.
The popularity of Non-Fungible Tokens (NFTs) have even extended to non-crypto users. It is safe to say that NFTs caught the attention of the people worldwide, regardless if they are crypto investors or not. Truth be told, online searches for NFTs in some regions surpassed its previous data in 2021. Many even argued that this digital concept will stick here for how many years. And those who dismiss NFTs will probably own them not long after.
However, a sudden leap of faith happened. Google Trends, a platform used as a basis for analysis to determine the level of popularity of an asset or market segment, even showed that online searches for “NFT” have had a landslide decline since January 2022.
What could possibly be the reasons?
The world is going through tough times.
People have been more aware of what’s happening globally. There is an ongoing slowdown in the economy worldwide, due to the unprecedented conflict between Russia, Ukraine and the rest. People’s interest in investment, in general, has started decreasing.
Aside from that, the global pandemic is still banging everyone. OpenSea, the largest NFT marketplace, was one of the most affected platforms where price drop has only increased.
NFTs are now strictly regulated.
According to MA Media 24, the US Securities and Exchange Commission is doing its job more seriously. They are now implementing investigations for NFT creators and marketplaces to see if any are going against the asset agency’s rules.This could be considered a good thing for some, because NFTs are now being recognized and regulations do not necessarily mean banning.
NFTs are not for everyone
This might be my best answer to this question. Collecting NFTs is not meant for everyone. The chances of making ROIs through this investment is still unrecognizable. I personally do not know if people in the future would remain interested in digital paintings, vectors and many more.
Author’s note: Please keep in mind that I did not write this article to let those NFT holders feel down. You do you, and enjoy the privilege of having your own collectibles. Thank you for reading!