Monthly spending on the purchase of NFTs in the world in November collapsed by 87%, to $442 million

Monthly spending on the purchase of non-fungible tokens (NFTs) fell by more than 87% in November to $442 million, according to the Financial Times, citing data from blockchain platform Chainalysis.

“According to Chainalysis, more than $19 billion was spent on NFTs between January and March 2022, more than half of the $36 billion spent on NFTs for the entire year. Since then, monthly spending (to buy NFTs – ed.) fell more than 87% to 442 million in November.

In addition, according to the Nansen research group, which is also quoted by the newspaper, the number of active NFT buyers and sellers has decreased by more than a third compared to the peaks reached in January this year. Also, the number of new tokens in the Ethereum blockchain fell by almost 60%.

“If the level of sales is unpredictable, inconsistent, and income is irregular, then you need to find a way to diversify sources of income,” the newspaper quotes Knights of Degen co-founder and one of the investors in the WAGMI United crypto group, Drew Austin.

“We’re entering a slightly slower economic environment, and what’s really beneficiary in this environment is the entertainment industry,” said Doodles CEO Julian Holguin.

However, some analysts believe that the creators of the NFT will not be able to create a successful business outside of the sale of digital images. “The fundamental NFT model didn’t work. It was a bubble that burst and it won’t happen again,” Claire Enders, founder of Enders Analysis, quoted the Financial Times as saying.