Web3 research tool and NFT community platform NFT Inspect has announced that it will be shutting down on January 17, a move that coincides with the global decline in NFT trades.
According to a tweet from the project’s team, the shutdown includes both their website and the web browser extension. NFT Inspect’s toolset allowed NFT traders and enthusiasts to properly gauge and assess NFT values, in terms of how it is performing within the NFT market in general, as well as, specifically, in terms of their popularity on Crypto Twitter. This was done by tracking changes in NFT Twitter profile photos and extracting analytics based on these changes.
“After months of working and reworking, we’ve come to the difficult conclusion that we cannot maintain Inspect going forward […] we want to sincerely thank each and every one of you for your support over the rollercoaster of this last year,” the NFT Inspect team stated.
Following a drastic market downturn in Non-Fungible Tokens (NFTs), the decision to end this project has been finalized. According to a recent report, NFT trading globally experienced an alarming 77% dip between Q2 and Q3 of 2022, resulting in total global volume of only $1.7 billion during that quarter.
What’s more concerning is that there was also an 84% decrease in profits from reselling these tokens during the same period — clearly demonstrating how quickly investor sentiment can change within this sector.
Data aggregated from CryptoSlam.io reveals how roughly $650 million worth of NFTs were sold in December 2022, a considerable decrease as compared to the whopping $2.6 billion figure observed in December 2021.
It is still unclear as to how this crypto space will evolve in the near future, however certain experts are exploring new avenues and possibilities for NFTs. As of now, however, it looks like crypto investors may have to look elsewhere for hopes of a more lucrative sector to carve on.
The crypto industry is taking notice of the declining trade dynamics in NFTs, and projects like NFT Inspect have been forced to make tough decisions that best suit their particular business model. Nevertheless, the crypto industry has a lot more to offer beyond NFTs with emerging use cases in other areas such as DeFi continuing to show promise for investors.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.