TECH NEWS – Just in a few months, the NFTs went from the future of the video game industry to a bunch of worthless and unwanted products.

In recent months we have witnessed a boom in Non-Fungible Tokens, better known as NFT. This unique, indivisible, transferable and scarce cryptographic token has permeated the video game industry. We have often seen several companies, many of them as big as Ubisoft or Konami, betting heavily on the technology.

However, despite being advocated for preserving content and adding value to the elements of video games, it does not seem to have a very promising future, at least if we look at the latest market trends. If we look at data from a report by Nansen (reported by Bloomberg), the bubble could be coming to an end.

The paper points to a global collapse in value, noting that a third of NFTs are now worthless, and another third of the total is being traded below the cost of minting the tokens themselves. In short: more than half of the NFTs have seen their value reduced, so they are failing speculatively.

The study analysed 8,400 collections comprising a total of 19.3 million Ethereum-based NFTs. Recent sales are down 30% from the previous month, and, according to Nansen, the decline is greatest (67%) on the OpenSea platform, where the vast majority of tokens are traded. The average value of tokens was $6,900 at the beginning of the year and now stands at around $2,000. In other words, if there was a daily NFT trading volume of $284 million in March, it plummeted by 80% to $50 million per day, according to the Financial Times.

Despite these figures, as our colleagues at Xataka remind us, this fall in the value of NFTs does not necessarily mean the end of the technology, as analysts such as Gauthier Zuppinger of NonFungible.com see this situation as a moment of “stabilisation”. This expert considers that there is still room for growth in sectors such as video games, where there is still moderate demand. It should not be forgotten that Konami made its debut in the NFTs with great success just a few months ago despite the great rejection of many of its followers.

Just as the different video game companies have adopted them for their future plans, other industry players have harshly criticised the NFTs, such as Itch.io, who have referred to them directly as scams. Developers themselves do not seem interested in the technology, with a recent survey noting that most do not approve of the application of NFTs in games.

Source: Bloomberg