88% drop in Google searches for 'buying NFTs' as crypto market crashes

NEW DELHI: As mayhem continues across the crypto market, be it cryptocurrencies or Blockchain-based Decentralised finance (DeFi), there has also been a massive 88 per cent drop in Google searches for "buying NFTs", a new report said on Tuesday.

The term "buy NFT" has dropped down to a score of 12 on a scale of 100 at the beginning of June, representing an 88 per cent drop from its peak score of 100 that was recorded in January, reports niche news publisher Bankless Times.

Similarly, the term "sell NFT" saw a 86 per cent decline in its search interest score from 52 which was recorded at the start of 2022, to a score of 7 in June, the report noted.

"People are losing their trust in cryptos in general. The recent Terra crisis showed how people could lose money in just a few days. That said, given the volatility of NFTs, people are being extra cautious," said Aliasgar Merchant, a developer relations engineer at Ignite (formerly Tendermint).

"Just following the trend like investing in an NFT because everyone is doing so will cause more harm than good in the long run," Merchant added.

The search interest for buying NFTs (non-fungible tokens) dropped consistently since the start of this year, signalling a period of consolidation for the best-performing digital asset class over the past 12 months.

According to a report by DappRadar, the NFT market generated $3.7 billion in terms of trading volumes in May, 20 per cent down from that registered in the previous month.

According to experts, an increasing number of fake profiles, Discord scams, phishing frauds, pump and dump routines, and rug pulls are coming to the fore in the NFT markets.

However, certain NFT categories like arts and entertainment have bucked the trend and witnessed a resumption in NFT search interest since mid-May.

In what could dampen the mood of crypto lovers, sales of non-fungible tokens (NFTs) have fallen a massive 92 per cent since September last year, according to data from popular website NonFungible.

The sale of NFTs fell to a daily average of about 19,000 last month, a 92 per cent decline from a peak of about 225,000 in September, reports Wall Street Journal, citing the data.

According to the report, the number of active wallets in the NFT market fell 88 per cent to about 14,000 in the first week of May from a high of 119,000 in November.

Many NFT owners now find their investments significantly less than when they bought those pieces of art.

The NFT market currently represents segments like collectibles, sports, entertainment, and arts.