Sentiment around NFTs drops 14% in companies amid crypto downturn

The sentiment around non-fungible tokens (NFTs) fell by 14 per cent among companies in the June quarter (Q2), demonstrating a decline in optimism around NFTs due to rising discussions about the downturn in the cryptocurrency market, a report showed on Wednesday.

In Q2 2022, NFTs have been the topic of more debates than ever, although opinions have changed resulting in a decrease in optimism.

“According to the most recent earnings announcements, this drop in confidence has been caused by discussions surrounding the cryptocurrency market decline,” said Ekta Chourasia, business fundamentals analyst at GlobalData, a leading data and analytics company.

The mention of NFTs in companies’ earnings call transcripts rose to their highest level in the June quarter (Q2), experiencing a 30 per cent rise (on-quarter).

Several companies like Concentrix Corp, BlackBerry, and NVIDIA Corporation discussed the depressed crypto market.

Coinbase Global, a banking and payment company, mentioned high volatility in crypto prices affecting its transaction revenue and Nano Dimension Ltd discussed crypto losing value.

There were some positive discussions on NFT as well, especially around mentions of “investment”, “invested”, and “launch”.

Coinbase Global, mentioned the launch of NFT Beta and its plan to add features that would facilitate people to mint their own NFTs.

The technology sector alone accounted for 53 per cent of the total NFT mentions, followed by the banking and payment sector with 18 per cent of the mentions.

“Some NFT discussions were also focused on the keyword aE-commerce’ showing the growing application of NFTs in the e-commerce businesses,” said Chourasia.

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