NFT market reset!

Trading volumes of NFTs have fallen 97 percent this year from a record high in January.

Transaction volumes of NFTs, digital art and collectibles recorded on blockchains, fell 97 percent this year from a record high in January. According to data from Dune Analytics, NFT transaction volume fell from $17 billion at the beginning of 2022 to $466 million in September. In the news in Bloomberg HT, it was stated that this collapse in the NFT frenzy stands out as a small part of the $ 2 trillion destruction in the crypto sector as rapidly tightening monetary policies negatively affect speculative assets.

What is an NFT?

A non-fungible token (NFT) is a record on the blockchain that is associated with a specific digital or physical asset. Ownership of an NFT is recorded on the blockchain and is transferable by the holder, thus allowing NFTs to be sold and traded. NFTs can be created by anyone and require little or no coding skills to create. NFTs typically contain references to digital files such as photos, video and audio. Because NFTs are uniquely identifiable assets, they differ from cryptocurrencies, which are fungible. In 2021, interest in the use of NFTs has increased. Blockchains such as Ethereum, Flow and Tezos have their own standards for supporting NFTs, but each works to ensure that the digital item being represented is uniquely unique. NFTs are now being used to commoditize digital assets in art, music, sports and other popular entertainment. The market capitalization of NFTs tripled in 2020 to over $250 million. NFTs also became an integral part of the metaverse. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!