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The nonfungible tokens (NFTs) market saw a dramatic slump in 2022. According to data presented by CryptoPresales.com, global NFT sales value fell by 76 percent year-over-year (YoY), reaching $638 million in December. The number of transactions was down by 38 percent, and the number of active wallets plunged by 80 percent. The trading volume for NFTs fell across all sectors, from art to gaming, and amid cryptocurrency rout.

NFTs are digital assets based on the blockchain technology. Unlike cryptocurrencies, NTFs are not fungible – i.e., mutually interchangeable – and therefore cannot be exchanged or traded equivalently like other crypto assets.

Since the crypto market crash, investors' confidence in NFTs has been fading, with the lack of clarity, theft, and scams as additional drawbacks. The monthly NFT sales value hit nearly $2.8 billion in December 2021, according to the NFT aggregation site CryptoSlam.
A month later, the figure hit an all-time high of $4.77 billion. However, the entire market slowed down significantly in the following months, with the sales value falling to $2.5 billion in March.

The number of unique buyers also plunged, falling from more than one million in December 2021 to 469,000 last month. At the same time, the number of unique sellers dropped by 46 percent YoY to around 453,700.