Data shows the NFT weekly market volume has now plunged down to the lowest value since July of 2021. Is the non-fungible token hype fading?
NFT Weekly Trading Volume Sinks To Lows Not Seen Since July Of Last Year
As Bitcoin and the wider crypto market has continued to bleed recently, the non-fungible token sector has also seemed to have suffered in the past month.
The indicator of relevance here is the “trading volume,” an indicator that measures the total amount of NFTs being transacted on the various blockchains in a given period.
When the value of this metric surges up, it means NFTs are being increasingly traded. Such a trend may show that interest around these tokens is going up.
On the other hand, decreasing values of the volume suggest the non-fungible token market activity is going down, implying that the interest in these digital collectibles may be declining.
Related Reading | Bitcoin Sentiment Again Slips Into Fear After Briefly Turning Neutral This Week
Now, here is a chart that shows the trend in the weekly NFT trading volume over the past year:
Looks like the value of the indicator has dwindled recently | Source: NonFungible
As you can see in the above graph, over the course of February, the 7-day NFT market volume seems to have plunged down.
The “7-day” version of the metric here averages the daily volume over the entire past week. Currently, the value of the indicator seems to be around $176 million.
Related Reading | Can Bitcoin Benefit From A $100 Oil Barrel? Why This Analyst Thinks So
This value is over five times less than the $924 million volume registered on the 31st of Jan. The last time similarly low values were observed was back in July of last year.
The reason behind this trend may be the declining price of Bitcoin and other cryptocurrencies. Also, most recently, the Russian invasion of Ukraine would have contributed to the plunge as well.
It can also be a sign that the NFT hype is dying down. However, such low interest may only be temporary as the market still finds itself in a good spot, and mainstream adoption has only been going up day after day.
At the time of writing, Bitcoin’s price floats around $38.7k, up 1% in the last seven days. Over the past month, the crypto has lost 7% in value.
The below chart shows the trend in the price of the coin over the last five days.
BTC's price seems to have plunged down over the last few days | Source: BTCUSD on TradingView
A few days back, Bitcoin had another retest of $45k, but the crypto failed once again and has since tumbled down to the current levels.
Featured image from Unsplash.com, charts from TradingView.com, NonFungible.com