The Decline of Non-Fungible Tokens and Trademarks
Have you noticed the diminishing interest in non-fungible tokens (NFTs) lately? The hype surrounding the NFT market started fading in the middle of last year and has continued to decline since then. As a result, the number of trademark applications for NFTs and related industries has dropped by a staggering 66% compared to last year.
66% Decrease in NFT Trademark Applications
Data compiled by Mike Kondoudis, an accredited intellectual property attorney, reveals that this year has seen a significant decrease of more than 66% in trademark applications for NFTs compared to the previous year. The negative trend in NFT trademark applications has persisted for eight months consecutively.
In 2023, the number of companies filing trademarks for NFTs, virtual goods and services in the metaverse, and cryptocurrencies has remained low. As of August, the United States Patent and Trademark Office has received a meager 2,152 NFT trademark applications.
Last year, however, the same office received around 6,164 trademark applications related to NFT assets by August. This represents a significant 66% drop from last year, indicating a substantial decline in the demand for NFTs and related products in recent months.
In addition, trademark applications for digital currencies, crypto, and associated products have also experienced a similar decline this year. In August, the United States Trademark Regulatory Office received only 1,439 trademark applications, down 66% from the previous year’s 4,100 applications.
Reasons for the Decline
What caused this sudden decline in the non-fungible token market, which was once so popular in late 2021 and early 2022? Many collectors attribute the market crash to factors such as market saturation, global inflation, and NFT scams. The resulting fear, uncertainty, and doubt have deterred numerous institutions from entering the NFT space.
Despite the downturn, some organizations and notable companies remain optimistic about NFTs. Casio, an electronics manufacturing firm, recently filed a trademark application with the United States Patent and Trademark Office, expressing their intent to explore new digital frontiers by launching NFTs and virtual goods in the metaverse.
Hot Take: NFTs Face a Significant Decline in Popularity
The decline in trademark applications for NFTs and related industries paints a clear picture of the waning interest in this technology. While some companies still see potential in NFTs, the overall appetite for these assets has decreased significantly. It remains to be seen whether the market will experience a resurgence or if this decline is indicative of a long-term shift in the crypto landscape.
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