Monthly NFT Purchases Drop Below 800K: Analysis

The monthly NFT purchases drop below the 800,000 range while they accounted for $2.6 billion worth of sales so let’s take a closer look at today’s latest cryptocurrency news.

The figures mark a huge decline compared with the record month before. The number of NFTs buyers in February dropped below 800,000 for the first time since October and the search volume also decreased. According to the data, the monthly NFT purchases dropped to 796,000 NFT buyers on the secondary markets in February and that accounted for $2.6 billion worth of sales which is a 40% drop from the month before.

Worldwide NFT search volume fell off a cliff

Reminds me A LOT of the crypto 2017 bull market and subsequent 2018 bear market

How long will the disinterest last until it starts to pick back up? Or will it? 👀 pic.twitter.com/4iQxcpLuYP

— Andrew Steinwold (@AndrewSteinwold) March 2, 2022

However, a caveat is that January was a huge month for NFTs which suggests that the drop in February is a part of a high pullback. January saw a record number of unique secondary NFT buyers and Opensea also saw record volume in January which totaled about $5 billion before pulling back to $3 billion. Over the past week, the interest also dropped by 60% from the heights of late January.

The US represents the most interest globally at the time of writing while Japan now shows the lowest interest in NFTs out of 61 nations despite the local tech and telecommunications giant Rakuten which launched an NFT marketplace a month ago. NFT proponent and managing partner of NFT investment fund Sfermion Andrew Steinwold also connected the pullback to the bull market and the crash of 2017 and 2018 as he questioned whether the interest will pick back up soon. The reasons why the general interest waned so much over the past month are not clear but OpenSea for example was the victim of a hack among other things.

The Russian and Ukrainian conflict could also have shifted the focus to crypto as global attention seems to have shifted to use cases like fundraising, storing value, and payments. CryptoSlam’s data also shows that 10 out of the top 12 NFTs supporting blockchains also saw a drop in volume in the past day. Ethereum and Solana posted dips of 4.25% and 11% respectively while the biggest losers were Avalanche which lost 27.79% and Panini which lost 36.20%. Flow and Arbitrum were the only ones to see some gains with 20.89% and a stunning 539% respectively.