Wall Street Journal

NFT analyst Garry Krugljakow spoke to GOBankingRates about the WSJ piece ‘NFT Sales Are Flatlining’ which stated the NFT markets are collapsing.

On May 3rd the Wall Street Journal repeated what some NFT investors are calling FUD (fear, uncertainty and doubt) that Google Trends for NFT searches and related keywords were down in 2022, alongside some other metrics. Mainstream media has been known for being skeptical of crypto, NFTs and blockchain tech over the years.

NFT Analyst vs WSJ

Investing, crypto and financial literacy website Go Banking Rates interviewed the CEO of Gogocoin, a DeFi Coin. He stated:

‘Volumes on the big NFT marketplaces, like OpenSea and Magic Eden, are soaring – thanks to integrations with layer-2 chains, such as Polygon, which have drastically brought down transaction fees. We are still in the early innings of this technology, and it’s clear that more people are buying NFTs from a wide variety of NFT collections and in greater numbers.’

A new 24 hour daily volume record for NFT trading was hit on OpenSea on May 1st, according to Dune Analytics.

Krugljakow added that is may be the case a ‘consolidation’ was taking place where investors were preferring more blue chip NFT projects ‘like the Bored Ape Yacht Club, DeGods and Okay Bears.’

That analysis matches the May 1st OpenSea volume coinciding with the Genesis mint of Otherdeed for Otherside NFTs, the largest NFT drop in history by Yuga Labs, makers of BAYC.

Other NFT Analysts Push Back

Tom Schmidt, venture capital investor at Dragonfly Capital, screenshotted the paywalled WSJ article and also pointed out Dune on-chain data.

He went to say USD volume would’ve given a better picture for analysis than ETH volume.

Another NFT analyst Toni Caradonna, CTO of crypto gaming platform Cross the Ages, commented:

‘If you look at, say, Magic Eden — the most popular NFT marketplace on Solana — volumes are exploding. More and more people seem to be entering the space and trying out new marketplaces beyond OpenSea. If anything, we might be in somewhat of a consolidation phase where users are buying into higher-value projects and in turn avoiding the lesser-known ones. All in all, NFTs are only getting started and will increase in popularity and use cases in the coming years.’

NFT analysis website NonFungible.com, which the Wall Street Journal used for citations, also stated that Q1 2022 NFT trading volumes of $8 billion can’t be considered a collapse.

Crypto analysis and tracking website Coinmarketcap.com also wrote a response, citing Data from DappRadar that 150,000 NFT walletsinteracted with OpenSea’s smart contracts in the past 7 days’, 1000% more than the Wall Street Journal reported.

It also noted that Coinbase and Kraken had recently launched NFT marketplaces, which would give investors more options for platforms.

Also in NFT news this month Meta announced that NFTs would be rolled out on Instagram, and following that on Facebook. That would introduce billions of people to non-fungible tokens.

Cryptoassets are a highly volatile unregulated investment product.