Search interest in non-fungible tokens (NFTs) has declined substantially over the past year. According to a BanklessTimes.com report, interest in the term peaked at 100 on June 19-25, 2022. Fast forward to a year later, and the score has plummeted to a low of 32 during the week of 4-10 June 2023. That represents a 68% fall in the measure.
To understand the reasons behind the waning search interest in NFTs, we sought insights from BanklessTimes CEO Jonathan Merry.
Why Has Search Interest in NFTs Dropped?
The CEO has identified the cooling down of the initial hype surrounding NFTs as one of the primary factors behind the trend. He argued that, as with any new technology, public interest in NFTS surged initially, only to taper off as the novelty wore thin. Merry explained:
As the hype around NFTs has cooled, people’s interest in them has also waned. NFTs experienced an unprecedented surge in value before, attracting speculative investors. But the market would always correct itself, and that’s what we’re seeing now.
BanklessTimes CEO Jonathan Merry
Another contributing factor is the general public’s lack of understanding of NFTs. Many people struggle to grasp the concept of NFTs and how they differ from traditional assets, which may deter potential buyers from investing. And critics’ arguments that NFTs lack inherent value have led some individuals to other investments with more established and tangible utility.
Lastly, Merry pointed out that the NFT space has faced criticism for its environmental impact due to the significant energy consumption of blockchain networks. Moreover, controversies, such as copyright infringement cases and unauthorized sales, have raised concerns about the authenticity and legality of certain NFTs.
Is Market Stabilization on the Horizon?
While the significant decline in NFT search interest over the past year may seem concerning, it doesn’t necessarily indicate the demise of this technology. Merry believes that the market will eventually stabilize and regain its momentum.
The current decline in search interest may be a natural correction in the market – a common occurrence in the lifecycle of any new technology. As the market matures, NFTs could continue to grow in popularity and become a more mainstream asset class.
The NFT market is still in its early stages, and it’ill take time for it to mature. There are a lot of great projects out there, and I believe the market will eventually stabilize and regain its momentum.
BanklessTimes CEO, Jonathan Merry
Moreover, NFTs have already demonstrated their value across various sectors, from art to sports collectables. This proves that there is a demand for this type of digital asset, and as the market stabilizes, NFTs are likely to gain even greater traction.
That said, knowing the risks involved in investing in NFTs is important. The market is still very volatile, and there is no guarantee that the assets will increase over time. Thus It is critical to do your research before investing in any NFT project and only to invest money you can afford to lose.