OpenSea, the world’s biggest marketplace for non-fungible tokens (NFTs) based on daily volumes, has recently witnessed demand in NFTs decline in tandem with trading volume.
It’s worth mentioning though that from the end of December 2021 to the beginning of February 2022, NFTs had a significant increase in both traffic and Google search interest.
The daily volume of OpenSea reached a height of around $250 million. However, recent declines in daily volume have brought that figure down to around $70 million, marking a 72% decrease from its high, as per data from research platform Delphi Digital.
On the whole, global “NFT” searches have experienced an even greater decline, with numbers down to levels last seen in early November.
A combination of branding and marketing, including collaborations with Adidas with BAYC and Nike purchasing RTFKT, celebrity purchases, and appearances in music videos, contributed to the first build-up of this NFT cycle. Yet since the promotions have slowed dramatically, the present situation of NFTs seems to be stagnant.
Unique wallets purchasing NFTs still fairly high
Even though the outlook appears bleak, Delphi has previously indicated that the number of unique purchasing crypto wallets is still a reasonably large amount. This is a good indicator of how many individuals are actively participating in NFTs, so if it begins to decline, it may be a reasonable gauge to assume things may start to go downhill.
Having said that, according to a recent report by Finbold, the number of NFT trademark applications in the United States stood at 1,263, representing a 421 fold growth from just three filings in 2020.
In particular, the United States Patent and Trademark Office (USPTO) received 407 new trademark applications in December 2021, and the increase continued in January 2022, when the total reached 450. This equates to around 15 new filings every day on average.
The filings indicate that businesses and people are increasingly compelled to join the blockchain arena in order to safeguard their brands and capitalize on the sector’s potential. Specifically at a time when the NFT environment is generating a lot of interest, excitement, skepticism, and excitement about the potential opportunities.
The need to register trademarks has been required by a variety of factors, including the need to seek out counterfeit copies, which have been on the rise lately. For example, OpenSea, discovered that many of the minted collectables on the platform were plagiarized works, fraudulent collections, or spam, according to the company.