Non-fungible Tokens: Another Industry Destined to Fail

Several years ago, the non-fungible tokens tried to make a lasting mark on the cryptocurrency and blockchain industry. Fast forward to today, and it seems this industry is already running on its last legs. Despite some projects still noting strong volume, attracting users from outside of the cryptocurrency industry remains the biggest problem to overcome. As such, one has to wonder how long these projects will be about unless something changes in a major way.

The Seven-day Volume is Waning

In the industry of non-fungible tokens, numerous projects are competing with one another. Prominent names are Decentraland, Cryptokitties, MLB Champions, and Etheremon, among many others. Despite all of these projects offering something different from one another, it seems the overall interest in these projects has waned significantly.  The current number of transactions over the past few days is still looking decent for some, but that only tells part of the story. 

When looking at the actual seven-day volume of all of these projects, it is evident there is a genuine lack of fresh capital coming in right now. The top project noted just under $64,000 in weekly volume, with the #5 non-fungible token on the list not even reaching $6,500 in volume. It is evident that succeeding in this particular niche industry will be pretty difficult, especially once the initial hype and excitement wear off. Without an increase in volume and transactions, a lot of these projects are bound to come to an end sooner rather than later.

Numerous Projects on the way out

The findings above confirm the few “top” non-fungible tokens are doing quite well, whereas everything else is struggling. For some particular projects, there are plenty of warning signs as to how their end will come a lot sooner than anticipated. Chainbreakers is a good example, as it noted no volume and no transactions over the past seven days. Neon District isn’t faring much better, as are Mythereum, Etherbots, Chibi Fighters, and Known Origin. All of these projects noted 15 transactions or less, with under $500 in weekly volume. 

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Even further up the rankings, it quickly becomes apparent there needs to be a change in terms of overall transactions. Of the entire top 10, just three projects noted over 250 transactions in the past week. Decentraland, Cryptovoxels, Cryptopunks, Blockcities, and MegaCryptopolis didn’t even get to 100 weekly transactions, which is not a promising sign either. In the case of Decentraland, that is less of a problem, as the average seven-day price sits at the $664 mark. CryptoVoxels and Cryptopunks aren’t doing that bad when looking at the average price either, but everything else looks a bit shaky at best. 

Attracting Non-crypto People

So far, none of these statistics are spelling doom and gloom, as all of these negative figures could easily be adjusted if fresh capital were to enter the industry. The bigger question is whether that is even possible or not. A lot of cryptocurrency speculators and investors are pouring money into Bitcoin first and foremost, whereas all other markets and offerings are of less interest. Non-fungible tokens are even less popular than altcoins as of right now, which makes it unlikely that more capital will come from that direction. 

Outside of the cryptocurrency space, however, it seems as if no one really cares about non-fungible tokens in their current form. None of these projects seem to rasp the overall attention, even though players would effectively gain full control over their data and digital in-game assets. Unfortunately, that is not a major selling point at this time. Changing that narrative is not an easy feat either. NFTs simple are not the big market some enthusiasts had hoped for. 

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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