Regardless of the success of NFTs at the beginning of the year, the second half of the year was not as fruitful, especially as the interest in digital assets began to decline with the ongoing market crash. Footprint Analytics’ 2022 Q2 NFT Industry Report shows that NFT trading volume dropped by 41% in 2022.
The report brings a summary and an analysis of the overall data of the NFT industry for the examined period. The investments directed towards the NFT collectibles, art, and games, were caused by low prices on the crypto market and increased hype around the technology. This led to the uncontrollable trading volume with a new height of 8.6 billion USD, which subsequently led to the fall of NFT trading volume in May. The drop in NFT trading volume from 19 billion USD to 11.26 billion happened during the perpetuation of the Crypto market crash.
The motivation behind the investment in NFTs for many was the rapid growth of trading volume from 16.94 billion USD in January to 54.58 billion USD in April, with an increase of over 222% since the beginning of the year.
Meanwhile, in June, a survey discovered that over 64.3% of people bought NFTs to just make money. With that in mind, it is only natural for the investors to lose interest as the crypto market experienced a severe movement down, and so did the NFT market trading volume and their popularity.
Lastly, 14.7% of the community just bought NFTs to join in with others. An even smaller part of the community — 12.4% was just purchasing and collecting digital art, whereas the last 8.6% just bought NFTs to access specific games and tools.