Interest In NFTs Is Declining Amid an Unstable Geopolitical Situation

According to Google Trends statistics, the number of searches for the term 'NFT' peaked at the end of January but has declined steadily since then

By
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

After continuous growth, the trade volume of NFT collectibles decreased by 40 per cent in February compared with the previous month. The global community was distracted from the NFT market by the geopolitical disputes between Russia and Ukraine. According to Google Trends statistics, the number of searches for the term ‘NFT’ peaked at the end of January but has declined steadily since then. The decline is also continuing in March.

Handout

The decline in February may be a bit of a lull: the NFT industry received considerable attention in January, breaking all previous records. According to the CryptoSlam, 730,154 NFT investors were active on the secondary market last month, 12 per cent less than in January. The trade volume of non-fungible tokens fell instantly by 40 per cent.

Despite the widespread reduction in interest, the NFT market continues to be noteworthy in the context of the geopolitical crisis. The government of the attacked Ukraine is actively raising funds to continue the country's warfare and defense. For this purpose, according to The Guardian, the Ukrainian government is planning to issue its collection of non-fungible tokens. Earlier, the Ukrainian blockchain developer, ElephantsLab, launched the "Ukraine's Angels" charity platform and released an NFT collection supporting Ukraine.

Against the backdrop of declining interest in NFTs, new NFT-avatar collections are delaying their sales launch or postponing them indefinitely. The sale of 10, 000 NFTs from the "Achoo!" collection has been rescheduled for mid-April. The new NFT collection of 25,000 "Novatars" has completed the Wishlist Sales but has not announced the start of the leading auction. A considerable amount of projects currently appear to be unaffected by the unstable market and geopolitical situations.

Singapore ranks first in the ‘interest by region’ category for the number of searches for the word ‘NFT’. It is followed by Hong Kong, China, Taiwan and the Philippines. Users from Turkey rank first on Google Trends for the number of searches for the word ‘metaverse’. China and Singapore are ranked 2nd and 3rd on the list, followed by Cyprus and Lebanon.

In December 2021, NFTs were a more popular search than cryptocurrencies. In January, monthly trade volume on the OpenSea marketplace reached a new all-time high. The situation has changed in March; much fewer people became interested in metaverses and non-fungible tokens.

The maximum interest in the metaverses was recorded at the end of October 2021. It was during this period that technology became a global trend. This happened after Facebook changed its name to Meta.

Information about NFTs remains engaging for the US, Canada, New Zealand and Cyprus users. South African, Nigerian and Pakistan citizens also show interest in non-fungible tokens.

Note: Investment in cryptocurrency or digital assets is subject to risk and readers should do their own due diligence. Entrepreneur Media does not endorse any such investment.