Just a couple of months ago, non-fungible tokens seemed to be everywhere. Visual artists, content creators, musicians, virtual marketplaces, investors, collectors – everyone bought into the hype, and many ended up making millions in the process.
Within a space of 3 to 4 months, investors poured $90 million into NFTs and digital collectibles, causing the overall market cap of NFT marketplaces to rise by 1785%, from $23 million at the beginning of this year to $432 million near the end of March.
Fast-forward to the present day, and this hype seems to have completely faded into the distance. On May 3, the NFT market peaked at $102 million in sales volume in a single day, with $170 million in NFT transactions in the week following the peak. But by the end of May, this figure had fallen to $19.4 million, indicating a 90 percent drop in transaction volume within a few weeks.
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