One Crash, Two Developments: Gloomy Mood on NFT Market, Enthusiasm for Crypto Investments Surprisingly High

It is not only Bitcoin, Ethereum & Co. that have seen their prices plummet in recent months. Many NFTs have also lost significant value. Yet while enthusiasm for cryptocurrencies persists, NFTs are barely perceived as an investment opportunity any more.

As a recent Bloomberg survey (MLIV Pulse) reveals, some market participants are still unsure about cryptocurrencies, but almost one in four investors is convinced that cryptocurrencies are the future. By contrast, only 9% consider NFTs promising investment opportunities.

Data from the Statista Global Consumer Survey also indicate that digital currencies are not being written off by investors despite the recent price decline. According to the survey, around 16% of German citizens were invested in cryptocurrencies in the summer of 2022, with a further 17% intending to invest in the future. By way of comparison, in the summer of 2020 the proportion was still 7% and 9% respectively.

While people’s understanding of cryptocurrencies is improving, NFTs are still a closed book for many people. 68% of German citizens say they have never heard or read anything about NFTs. Those familiar with the subject also seem to be growing sceptical, with trading volumes on NFT marketplaces plummeting massively in June and July. Google search engine data also indicate a significant downward trend in interest in NFTs lately.

According to recent survey data, the majority of NFT investors find the value of their digital assets in the red. Not so with crypto investors: more than half of Bitcoin (BTC) and Ethereum (ETH) addresses are in the profit zone, meaning that the coins were bought at a time when the price was still lower.

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