Monthly NFT interest drops as external factors weigh in

The NFT market saw a slow down last month with interest falling 12% compared with January

The word NFT made up from small NFT images                                 
February recorded 796,009 NFT buyers, accounting for $2.6bn worth of sales – Photo: Shutterstock
                                

According to data from CryptoSlam, the NFT market saw a fall in activity in February with the market down 12% compared with January.

Last month, there were 796,009 NFT buyers with the figure dipping below the 800,000 threshold for the first time since October 2021. NFT buyers accounted for roughly $2.6bn worth of sales, which is down 40% compared with January this year.

External factors

In March 2021, the world of NFTs changed dramatically after Beeple’s renowed ‘Everydays: the first 5,000 days’ NFT was auctioned off for $69m at Christie’s and made headlines worldwide.

The NFT market picked up significant momentum soon after with the hype influencing new sales, artists and communities. Mark Zuckerberg rebranded Facebook to Meta and launched the metaverse and Web3.

The momentum carried into 2022, signalling a positive start to the year. January recorded some of the the biggest sales in NFT history, with a record number of 904,135 NFT buyers, and the US ranking as the country most interested in NFTs globally. 

However, the slow down in February could be linked to a series of external factors affecting the markets. The wider cryptocurrency market witnessed a rocky few weeks throughout the month, with Bitcoin dipping below the $38,000 mark and the overall crypto market experiencing a slow down in activity.

The Ukranian crisis with Russia is another factor that has shifted the focus of investors. Another element to consider is that January was a monumental month for NFTs, which saw an influx of global brands, musicians and athletes inking new deals to create momentum in the space. Although there are no clear indiciations as to why interest decoupled for a few weeks in February, the momentum is expected to continue throughout 2022.

Further reading

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