Schadenfreude And 'I Told You So'-s Abound After Report Claims NFT Bubble Has Burst

Critics of NFTs are getting in their yuks after a report from Protos declared that "The NFT bubble has popped."

The key takeaway from Protos' extensive report is that NFT sales have dropped 90% in the past month. On May 3rd, the peak of the NFT boom, $102 million worth of NFTs were sold. $19.4 million worth of NFTs has sold in the past week. Furthermore, the amount of NFT wallets, or accounts used to purchase NFTs, have dropped from 12,000 to 3,000.

Several categories of NFTs are on the downswing in sales, particularly NFT art, which went from racking up $2 million in sales a day to barely sniffing a million.

While the numbers certainly do show that NFT sales have slowed, it may be overzealous to say the market is dead. The $102 million May 3rd peak is a strong outlier in the data: the second-highest day of sales in the history of NFTs is in the mid-20 millions, so to compare any days' worth of sales to the NFT peak will show a dramatic difference.

Still, the headline suggesting that the NFT bubble has burst was music to the ears of NFT critics, who took to Twitter to celebrate the supposed death of the hottest crypto trend of 2021.

While NFTs have always been criticized as a scam with negative environmental impact, the criticism has ramped up of late, particularly after several YouTubers announced they were removing their classic videos from the platform to sell as NFTs.