Is The Era Of Meme Stocks And NFTs Already Over?

Is The Era Of Meme Stocks And NFTs Already Over?

Photo by Markus Spiske on Unsplash.

With an excess of stimulus money and time on their hands, people's attention landed on commission-free trading platforms, leading to an exuberant rise in prices this year. Now, with vaccines rolling out, final stimulus checks being spent, and warm weather returning, attention is returning to socializing and traveling.

Memes Fall Flat

So goes the explanation for why prices in meme stocks have been flat since the frenzy reached fever pitch in late January, according to Bloomberg. Google searches for "flights” reached a popularity score of 100 (the highest possible for a given period of time) in the past week, while searches for phrases like “stock trading” and “investing” have plunged, Bloomberg said, citing Google Trends data.

“The stimulus check impact on retail trading is waning,” Bloomberg quoted Edward Moya, senior market analyst at Oanda, as saying. “Many Americans are looking to go big on attending sporting events, traveling across the country, vacationing, visiting family and friends, and revamping wardrobes before going out to restaurants, pubs, and returning to the office.”

Retail traders accounted for nearly 25% of trading activity in the past year, up from an average of about 10% over the decade prior to the pandemic, Benzinga noted two weeks ago, citing Goldman Sachs.

NFT Prices Plunge

Meanwhile, interest in another source of exuberance, non-fungible tokens, appears to be on the wane as well, just weeks after the $69.3 million Beeple artwork sale brought the digital innovation to the world's attention.

Average prices for NFTs peaked in February at about $1,400, but have fallen by almost 70% since then, according to Bloomberg, using data from NFT market-tracker Nonfungible.

Bitcoin.com noted a decline in interest in NTFs. The site said search terms for NFTs have been falling since mid-March in the U.S. and worldwide, though the numbers still remain high, mostly in the 90's. Bitcoin quoted an author who has written on NFTs, saying that the market suffers from an oversupply as more people realize how easy NFTs are to create.

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© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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