NFTs (non-fungible tokens) have been quite the buzz among crypto enthusiasts. These are unique irreplaceable tokens on a blockchain and can be anything digital.
These tokens have caught the eye of a large audience indeed. This is why it comes as a shock that the number of unique NFT buyers has dropped in February for the first time since October.
Some crypto enthusiasts anticipate it to be caused by the current crypto market situations due to the geopolitical events, while others believe it to be a healthy pullback.
Even the flagship crypto asset has seen a 1.03% drop in its price in the last 24 hours after surging as high as the $45k price region. This price correction is also believed to be healthy for Bitcoin, however, it is yet to be seen in real life.
Despite the price fluctuations noted for BTC, the significance and value of the crypto king cannot be denied. Therefore, if you are interested in buying crypto, make sure you choose one of the most popular crypto exchanges.
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Why Has the Number of NFT Buyers Dropped?
According to reports, the secondary markets had 796,009 NFT buyers in February. As compared to January, there has been a drop of 12% in NFT buyers.
The number of NFT buyers in February is accounted for approximately $2.6 billion worth of sales, which is 40% less than sales seen in January.
This decreased number of NFT buyers has occurred for the first time since October, which has taken everyone by surprise. However, this is not the only aspect that has been affected as the search volume for NFTs has also dropped substantially.
Some enthusiasts believe that the reason for this drop is the fact that January was quite a successful month for non-fungible tokens. This suggests that the drop seen in February is merely a healthy pullback.
The conflict between Russia and Ukraine can also be a potential reason why people have shifted their attention towards digital assets more. This is because cryptocurrencies are being used for fundraising, making digital payments and a lot more, all over the globe.
However, as mentioned earlier, a drop has been noted in the search volume for NFTs as well, which is around 60-70%. Enthusiasts have been unable to pinpoint any reason for this decline although a hacking incident experienced by a top platform in February is likely to be one of the reasons.
What to Know as a Crypto Investor?
While the NFTs have lost the interest of a large audience, the crypto assets are still going quite strong, especially due to the Russo-Ukrainian war.
Cryptocurrencies are being used to raise funds for Ukraine, among several other things.
The price of the digital assets was also briefly impacted by the conflict, however, the crypto market seems to be doing alright at the moment.
The price correction seen for various digital assets at the moment is considered to be healthy for the assets.
Therefore, if you are interested in buying a crypto asset then make sure you choose one of the largest crypto exchanges and take a look at the price movement of the asset before buying.
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