SNEAK PEEK
- Since January, the trading volume for nonfungible tokens (NFTs) has dropped by about 98%.
- Numerous industry insiders, however, assert that there is no need for concern because technology is continually improving.
- A Kraken executive claims that positive institutional acceptance indications and consistent use case growth are still being seen.
Trading volumes for nonfungible tokens (NFTs) have decreased by almost 98% since January, but according to numerous industry insiders, there is nothing to worry about because the technology is still developing and getting better.
Although NFT market activity and sales volume slowed down in September, according to Jonathon Miller, managing director of cryptocurrency exchange Kraken in Australia, encouraging adoption signals at an institutional level and sustained growth in use cases are still being observed.
The business is still “bullish on the NFT space,” he continued, and thinks it will be “just as disruptive and innovative as Bitcoin was ten years ago.” He said that hearing that “the Vatican has created an NFT exhibit” and JPMorgan “negotiating a lease using the technology” also piqued his interest.
The NFT business is still “in its infancy,” he conceded, and “nightmarish user experiences” are the largest obstacle to widespread adoption. He said that it is “extremely difficult to tell someone who wants digital art, that you have to install a wallet and you have to be onboard with that exchange.”
Smoothing out that process has been a top objective for Kraken, according to the CEO.
The CEO and founder of the NFT game platform Balthazar DAO, John Stefanidis, another well-known figure in the sector, stated that the trade downturn is not significant in the overall scheme of NFTs because “NFTs are more than simply photographs.”
It is normal for this drop to occur when “something has had extraordinary growth under one application,” according to Stefanidis.
According to information from the cryptocurrency websites The Block and CryptoSlam, trading volume for NFTs has decreased across all industries, from gaming to the arts.
That represents a sharp decline for an NFT market that in recent years saw many $1 billion trading weeks as traders, speculators, and collectors competed to acquire desired digital relics to make money, advance their status, and flaunt their collections. NFT trading volumes have averaged $35 million per week since the beginning of September. The market has not demonstrated any signs of recovery amidst a weak stock market and excessive inflation.
