CryptoSlam indicates a decrease in trading volumes of non-fungible tokens by 54%
BTC has proven to be one of the most popular blockchains for NFT deployments this year. At the same time, the activity of participants in this market has recently begun to decline.
NFT trading volumes, according to CryptoSlam, fell in May by 54% compared to the previous period, to $630 million. At the same time, in April the volume of transactions exceeded $1 billion.
ETH, BTC and SOL showed the most serious declines in the past month. In May, $179 million worth of transactions were carried out on the Bitcoin network. The volume of sales of non-fungible tokens on this blockchain fell by almost 70%. Turnovers on Ethereum and Solana last month decreased by 55% and 48%, respectively.
A US Treasury report was recently released stating that the NTF industry is associated with risks of fraud and is also a favorable environment for laundering illegal proceeds.
“The assessment finds that NFTs are highly susceptible to use in fraud and scams and are subject to theft. Moreover, some NFT firms and platforms lack appropriate controls to mitigate risks to market integrity and to combat money laundering and terrorist financing, and sanctions evasion,” the ministry noted.
Researchers have pointed out that while a significant portion of money laundering and terrorist financing transactions are primarily using fiat, there are cases of fraud in the NFT space as well.
“Criminals often try to sell or trade stolen or illicitly-gained NFTs quickly in order to evade discovery, obfuscate the source of NFTs, or complicate the ability of NFT platforms, blockchain analytics companies, and law enforcement to trace the location of the NFTs and any profits from illicit sales,” the US Treasury explained..
But Policygenius analysts concluded that Generation Z and millennials continue to be interested in tokenized collections. In addition to NTF, Bitcoin and other digital coins are predictably very popular. 22% of US residents aged 27 to 42 have already invested in these assets and intend to increase their investments in the near future.
