Despite a stellar start to the year for non-fungible tokens (NFTs), the second quarter does not seem to be as promising, as public interest in digital collectables continues to drop.
According to the ‘2022 Q2 NFT Industry Report‘ compiled by Footprint Analytics and released on August 7, the trading volume of NFTs in the second quarter of 2022 fell by 41 percent.
According to the research, which compiles and analyses the entire statistics of the NFT business for the analysed period, investment money has been “coming into the NFT market for collectables, gaming, and art” since the beginning of the year due to reduced pricing on the cryptocurrency market.
Consequently, these favourable factors “driven the NFT market to an all-time high trading volume of $8.6 billion,” setting a new benchmark. That being said:
“However, by mid-May, the crypto market encountered significant obstacles, and the NFT market cooled. The volume of NFT trading fell from $19.02 billion in Q1 to $11.2 billion in Q2.”
Motivation for purchasing NFTs
Finbold revealed in mid-April that the total volume traded in NFTs had surpassed $54 billion in aggregate value, up from $16.94 billion on January 1, 2022, to $54.58 billion on April 17, representing a rise of over 222 percent since the beginning of the year.
A June industry study revealed that most users, precisely 64.3% of those surveyed, only purchased NFTs “to earn money.” Considering that more than half of investors purchase NFTs only for financial gain, it is maybe not unexpected that Q2 trading volume decreased as the crypto market encountered downward pressure.
Joining a group and flexing was the second most common reason for acquiring NFTs, cited by 14.7% of respondents while collecting digital art was cited by just 12.4% of respondents. Even fewer individuals, 8.6%, indicated they purchased NFTs simply to access games and tools.
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