The NFT market has been tumultuous in recent months, and the figures indicate a sluggish trend in terms of prospective buyers. Data aggregator CryptoSlam characterizes as a “mini-bear market,” the number of unique non-fungible purchases fell below 800,000, breaking a three-month trend. The number of unique NFT buyers fell by 13% in February compared to the previous month, according to CryptoSlam data. Buyers of the NFT market will slip below the 800,000 level for the first time since October.

A “bear market” means when the price of an asset falls for a lengthy period. When stock prices have fallen by at least 25% from recent highs, it is called a bear market correction. February also saw a 40% drop in sales volume from the previous month’s US$4.4 billion, which was just shy of August’s all-time high of US$4.5 billion.

Also, read – The Ember NFT Digital Art is a hot blazing thing on Ethereum Blockchain

The NFT Market Has Been Put To The Test

With the ongoing Ukraine crisis causing instability in global markets, many NFT investors are hopeful that the new digital asset class might demonstrate its utility to investors in the same way that bitcoin did during the pandemic-induced market collapse in March 2020.

The reduction in NFT market volumes has resulted in a drop in sales volume for blockchain networks that service NFTs. According to CryptoSlam, only two of the 12 networks have grown in the last 24 hours. Both Arbitrum and Flow increased by 538 percent and 20%, respectively. The rest of the market lost money, including Avalanche, BSC, Solana, Ethereum, and Cronos.

“Historically, negative NFT market have been brief,” CryptoSlam chief marketing officer Yohann Calpu told Forkast, “and with the 70x growth in NFT sales since November 2020, a cooling-off is expected.”

Will There Be A Reversal?

The crypto-community makes up the NFT market, and those who benefit from it are willing to give back.

“A lot of it is support for the artists’ experiences, or someone has sold some work and done reasonably well, and they want to give back to the community and ecosystem,” says David Moore, CEO, and Co-Founder of KnownOrigin Labs.

Meanwhile, a drop in transaction volume isn’t always a cause for alarm. Experts believe a pullback is only natural given the NFT market’s excellent January performance.

However, given the fall in interest in the NFT market, there is still reason to be concerned, particularly for individuals who have made significant investments in this asset class. Searches for NFTs have fallen as well, according to Google trends. The search volume for the NFT market has declined by 60–70% compared to late January’s high.