CNBC, an American economic media outlet, reported on the 15th (local time) that the number of transactions in the non-fungible token (NFT) market, which had exploded in popularity this year, is rapidly decreasing, indicating that it is a signal of a bubble burst.
NFT is the application of blockchain technology, which is the basis of cryptocurrency (virtual currency), to online creations, and since all the people who have owned the product are recorded, the ownership of online content can be clearly specified.
NFTs are rapidly increasing their influence in the field of digital art and game item trading because they can give virtual assets the value of scarcity and uniqueness. Netizens are enthusiastic about NFTs, saying that thanks to blockchain technology, you can perfectly prove ownership of virtual items.
At one time, there were more NFTs than Bitcoins in a Google search. However, there are signs that the craze is fading.
In March, a work by digital artist Beeple was auctioned off at Christie’s for $70 million (78.2 billion won), setting an all-time record. Recently, Twitter co-founder Jack Dorsey’s first tweet sold for $2.9 million (3.2 billion won) done.
However, NFT sales have been declining sharply in recent years. The 7-day average of NFT sales recently fell below $20 million. This is a vertical drop from the peak of $180 million in early May.
This can be attributed to the decline in cryptocurrencies such as Bitcoin.
Jeff Osler, CEO and co-founder of the NFT app S!NG, said, “The NFT craze was strong in the display of wealth accumulated due to the rise in cryptocurrency prices. did.
After peaking at $65,000 on April 19, Bitcoin plummeted to around $40,000 as of the 16th.
Although the NFT market has recently waned, experts are optimistic about the NFT market in the long run. This is because NFTs, which can perfectly prove the ownership of online items to millennials (the generation born in the early 1980s to early 2000s, who are fluent in IT) have a significant appeal.
