Non-Fungible Token (NFT) has become one of the broadly adopted digital marketplaces in the last couple of years. However, recently the market has fallen off the cliff. The fading crypto market is one of the key reasons behind the fall. The market also got impacted due to the rise in shaky investment sentiment, as it is rife with scams by shady creators. Against this backdrop, the social media (Twitter and Redditor) discussions around NFT have hit the lowest level in July 2022, reveals the Social Media Analytics Platform of GlobalData, a leading data and analytics company.
GlobalData observes the social media discussions around the NFT have been declining since the beginning of 2022 and fell by more than 40% in the last three months (June-August) compared to the previous three months.
Smitarani Tripathy, Social Media Analyst at GlobalData, comments: “Influencer sentiment around NFT is getting suppressed due to the recent fall in NFT token transactions led by the lack of data security and plagiarized tokens. One of the sharp falls in social media sentiment was noticed in July, fueled by an e-mail data breach in Ozone Network Inc (OpenSea), one of the most popular NFT marketplaces.”
NFT market is struggling to sustain its previous growth due to the scourge of hacks. Social media conversations around ‘Hacking’ surged by 450% in 2022*, when compared to the previous year. Other than OpenSea e-mail breach, some of the notable hacks on NFT platform in 2022 were on Lympo, Boarde Ape Yatch Club, Omni, DragonSB Finance, and Premint, where millions of dollars have been stolen.
A similar trend was also observed in the company filings during 2022. In Q2 2022, sentiment fell by 14% to a score of 0.86, demonstrating a decline in the optimism around NFTs due to rising discussions about the downturn in the cryptocurrency market, according to the GlobalData’s Company Filing Analytics database.
An analysis of GlobalData’s Job Analytics Database reveals that NFT-related job postings started declining and recorded 50% fall during the last three months (June-August) over the previous three months.
*As of August 2022