According to U.Today, despite the ongoing cryptocurrency rally, global search interest for non-fungible tokens (NFTs) remains significantly low. Google Trends data reveals that the term 'NFT' has attracted fewer search queries compared to 'crypto' this year, indicating a decrease in demand for the sector that was a key player in the 2021 bull run. In March, the term 'crypto' reached peak popularity with a value of 100, while 'NFT' only managed a value of 10.
The same trend was observed in May, with NFTs failing to generate substantial interest despite rising crypto prices. This is a stark contrast to January 2022, when the term 'NFT' was ahead of 'crypto' by a considerable margin (82 and 66, respectively). Other metrics also confirm the struggle of the NFT sector to recover. Data from AltIndex.com shows that the number of active wallets holding NFT tokens has now fallen to the lowest level since early 2021. The NFT space has lost more than 90% of users since reaching its peak in December 2021.
In 2021, NFTs garnered significant attention from celebrities and major companies, becoming a hot topic in the investment community. They also provided a platform for creators to monetize their work. However, due to crises in the crypto industry and unfavorable market conditions, such investments quickly lost their appeal.
While NFTs are struggling, the term 'Web3' appears to be completely out of favor. The term, which gained traction in late 2021 and 2022 as the go-to term for the new iteration of the web with a strong emphasis on decentralization, has failed to catch on. In May, it attracted only a small fraction of search interest compared to crypto.