Nightmare for NFTs: - 75% transaction volume in June 2022

Nightmare for NFTs: – 75% transaction volume in June 2022

Is this the beginning of the end of NFTs? – For several months, the course of cryptocurrencies has a lot fall. At the same time, enthusiasm within the community has also declined. Indeed, euphoria gave way to despair. Not surprisingly, the NFT are also affected by this phenomenon, so that the trading volumes of these were divided by 4.

Falling NFT prices

The non-fungible tokens (NFT) met with unprecedented enthusiasm from August 2021. Indeed, during this period, several collections of NFT However, released months or even years ago, their prices exploded. This is particularly the case of CryptoPunks released in 2017 and remained in the shadows until 2021.

The NFT ecosystem recorded a peak of enthusiasm in January 2022 registering a record volume of 16 billion dollars. However, since this January peak, the volume recorded by the ecosystem of NFT on Ethereum continues fall.

So that between the months of May and June 2022, the trading volume of NFT has been reduced by 75%, passing from $4 to $1 billion.

between May and June 2022, NFT trading volume decreased by 75% from $4 billion to $1 billion
Evolution of NFT trading volume on major crypto platforms – Source: The Block

This is the greatest decline month-to-month volume for the NFT ecosystem. Until now, the record was held by a 48% drop volume between February and March 2022.

The Ethereum blockchain: the eternal queen of NFTs

Obviously, theinfatuation encountered around NFTs is not not restricted to the blockchain Ethereum. As proof, most smart contract and other EVM-compatible blockchains have also witnessed the proliferation of NFT projects.

However, Ethereum has been able to maintain, by far, its lead over other blockchains. By way of comparison, Solana, which is the second blockchain in terms of trading volume on NFTs, registers on average a tenth of the volume of Ethereum.

Ethereum has kept its lead over other blockchains by far.  For comparison, Solana which is the second blockchain in terms of trading volume on NFTs, registers on average a tenth of the volume of Ethereum.
Evolution of NFT trading volume by blockchain – Source: The Block

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NFT volume down, but not among hackers

Despite a significant drop in the trading volume of NFTs, they are still popular with hackers. To tell the truth, the last few months we have witnessed a resurgence of scamsparticularly related to NFTs.

At first, many NFT artists were targeted by attacks of the type Trojan horse. Concretely, an attacker contacts the artist claiming an artistic order. Once in contact, the attacker sends a fake PDF file to the artist, which is actually a script file. If he opens it, it will compromise his computer, giving free rein to the attacker.

Secondly, more than a hundred NFT projects saw their Discord servers compromised. In this case, the attacker takes control of the Discord and takes the opportunity to publish a message of the type phishing. Its objective is to steal the NFTs held by the community of the said Discord server.

In the meantime, NFT projects continue to develop their products. Recently, the giant Yuga Labs hosted a demo of his metaverse Otherside. In total, more than 4,300 users were able to preview part of the metaverse of the world of Bored Apes.

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