Why brands keep launching NFTs, even though the hype has died down and trading volume is low


By Anushree Dave

Hi everyone, welcome back to another Distributed Ledger. This is Anushree Dave, crypto reporter at MarketWatch.

May is on track to become the first month in 2023 when NFT trading volume will fall well below $1 billion, according to new analysis from DappRadar. But brands, despite the low trading volume, are surprisingly still launching NFT collections.

As a reminder, NFTs, or nonfungible tokens, surged in popularity in 2021. It was exactly 2 years ago, in May 2021, when artist Beeple sold NFT digital art for $69 million. NFTs are unique cryptographic tokens that can be linked to digital or physical items. They’re backed on a blockchain, and serve as a digital certificate that verifies ownership and authenticity.

But with the hype fading around the metaverse, web3, and crypto, it seems that traders aren’t splurging on NFTs the way they used to. So why do brands keep launching collections? Read more below.

You can find me on Twitter at @anu__dave to share any thoughts on crypto, this newsletter, or your personal stories with digital assets….

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