Are NFTs just a fad or will they redefine digital art?
After all the attention NFTs got during 2021, people have started to lose interest in NFTs, and metaverse in 2022 says the report by the Google trend.
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Updated November 2026. This was first published on 18 March 2022. The idea is the same. Any number below is what the original piece said then. It is not a new count.
Key takeaways
- After all the attention NFTs got during 2021, people have started to lose interest in NFTs, and metaverse in 2022 says the report by the Google trend.
- Towards the beginning of 2022, NFTs and metaverse appeared on searches more than cryptocurrencies.
- The hype for NFTs truly began when Facebook decided to rename its branding as Meta.
After all the attention NFTs got during 2021, people have started to lose interest in NFTs, and metaverse in 2022 says the report by the Google trend. Towards the beginning of 2022, NFTs and metaverse appeared on searches more than cryptocurrencies. The hype for NFTs truly began when Facebook decided to rename its branding as Meta.
was looked up more frequently from Singapore, Hong Kong, China, Philippines, Canada, etc. Metaverses gained immense popularity in Turkey, China, Singapore, Cyprus, and Lebanon. The above was according to the report published by Google as per Google trend.
There are various reasons for this depletion in interest. Some reports show a decline in the sales volume of NFTs. As per the data, NFT sales at the beginning of February were more than 376,000, but in the last few days, it dropped below 100,000. There could be various reasons for such a drop.
What could be the possible cause for decline? #
As per our analysis, here are some possible causes for this decline.
Wash** trading and inflation scams: Wash trading and inflation scams are being witnessed in the NFT market. These are done to make additional profits by over-trading a specific NFT. Read this article to understand the wash trading scenario in the NFT market.
Money** laundering: Money laundering has been reported in the NFT market space, although it is seen in smaller volumes. Money laundering is the most indulged activity by cybercriminals to make best use illicit funds by buying and selling NFTs.
Change** of mind: NFTs gained immense popularity from the very start. Celebrities used it to increase their fan following, corporates used it as a medium of marketing, and artists used it to display their art and skill.
People losing interest temporarily doesn’t necessarily mean that art lost its value. Maybe it’s just an impact of Russia invading Ukraine, or it’s just another depression in the market.
Increase in regulations by various countries:** NFTs and metaverse have been recognized as instruments of investments and shall be subject to tax with Also regulations. A similar trend was witnessed in cryptocurrencies with regulations imposed on them.
Various other reasons include lack of investors, shortage of creators, unreasonable gas fees, and environmental concerns regarding the amount of pollution it might cause.
How should you invest in NFTs cautiously? #
Investment in NFTs might seem risky at the moment considering the sudden decline in interest.
Buy cheap NFTs**: There are several NFTs that are available for a lower cost. You can use these to build your portfolio, it might cost you around a few hundred dollars. can end up getting you millions.
Added unique** features: NFTs with additional features have unique token properties, these features tend to drive up the price of the NFT. Sometimes these features can be expensive that might attract scammers.
Learn to accept losses and failures:** Losing money is common when investing in NFTs. There is a higher rate of failure when it comes to NFTs. But, this doesn’t mean you should accept losses on most of your investments. Your losses should be set off with profits from high-value investments.
Invest in trendsetters:** Trendsetters are the NFTs that are first created by people who try their hand in the market. NFTs of this sort grow in value as the artist gains fame with time. These are low investments at first, but can be rewarding once they raise in value.
Fractional ownerships:** Fractional ownerships of NFTs are investments where you can own a tiny proportion of high-value NFTs and can sell them when they raise in value.
Don’t** panic: There are many short-term fluctuations in every market. It is advisable not to panic in such situations as they lead to poor decision-making.
Avoid fruitless investments:** Fruitless investments are those that have no value in the future. They have a momentary hype that runs on short flames. If you are looking for a quick way to make profits then this might be your thing.
a) NFTs from unknown artists: NFTs from such artists can’t be trusted as they might be frauds trying to sell you copied work or hackers trying to steal your stuff by selling your corrupt tokens. Do not trust any unknown seller until they provide something trustworthy.
Conclusion #
The NFT market might be at a temporary downfall because of all the things going on. It is in your best interest to be updated with the market trend and value your investments accordingly.
Questions and answers #
What could be the possible cause for decline? #
As per our analysis, here are some possible causes for this decline. Wash trading and inflation scams: Wash trading and inflation scams are being witnessed in the NFT market.
How should you invest in NFTs cautiously? #
Investment in NFTs might seem risky at the moment considering the sudden decline in interest. Buy cheap NFTs: There are several NFTs that are available for a lower cost.