The NFT industry is in free fall

While non-fungible tokens peaked in 2021, the turmoil in the crypto market in 2022 has a significant impact on this sector.

French artist Albertine Meunier is a collector of NFT, these non-fungible certificates attached to digital artworks. This sector, after a period of prosperity, saw its image seriously damaged by the fall of cryptocurrencies and the scandal of the bankruptcy of the FTX platform.

At its peak, in 2021, works could sell for tens of millions of dollars, such as “Everydays” by artist Beeple ($69.3 million).

In the third quarter of 2022, on the other hand, the volume of NFT exchanges decreased by 77% compared to the second quarter, falling from 7.3 to 1.67 billion dollars, according to the specialized website NonFungible. However, the number of transactions fell slightly, by 5%, from 11.46 million to 10.9 million sales. A sign that it is above all the average value of NFTs sold that has collapsed.

At the same time, the number of buyers also fell by 22% from one quarter to the next, reaching 903,000 people. Sellers recorded a net loss of just over $450 million in the third quarter, the first since the advent of NFTs.

However, the French artist is not worried about that, although she acknowledges that her portfolio of digital works has collectively lost its value in recent years.

“Speculation has only benefited a certain class” of artists, she emphasizes. “But NFT is a form of support” for creators, she continues.

NFTs allow artists to automatically receive a commission every time one of their works is resold.

“We feel (autumn) of course. But I continue to collect and campaign,” explains Albertine Meunier.

Shaken by the crisis, however, some NFT platforms, such as LooksRare, have announced that they will no longer require buyers to return this percentage of resales to creators, sparking protests from artists, mainly in the United States.

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