Mentions of ‘Non-fungible tokens (NFTs)’ in companies’ earnings call transcripts rose to their highest level in Q2 2022, experiencing a 30% Quarter-on-Quarter (Q-o-Q) rise, however, sentiment fell by 14% to a score of 0.86, demonstrating a decline in optimism around NFTs due to rising discussions about the downturn in the cryptocurrency market, finds GlobalData, a leading data and analytics company.

Ekta Chourasia, Business Fundamentals Analyst at GlobalData, comments: “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.”

Several companies like Concentrix Corp, BlackBerry, and NVIDIA Corporation discussed the depressed crypto market. Coinbase Global, Inc, a banking and payment company, mentioned high volatility in crypto prices affecting its transaction revenue and Nano Dimension Ltd discussed crypto losing value. With the crypto market impacting the NFT industry, sentiment around NFT fell in Q2 2022.

However, there were some positive discussions on NFT as well, especially around mentions of ‘investment’, ‘invested’, and ‘launch’. CurrencyWorks Inc., a technology company, revealed its investment in the Barrett Jackson NFT platform. In the retail sector, GameStop Corp discussed its focus on pursuing growth opportunities in NFT, cryptocurrencies, and Web3 gaming verticals. Also, Coinbase Global, Inc., mentioned the launch of NFT Beta and its plan to add features that would facilitate people to mint their own NFTs.

According to GlobalData’s latest report, ‘Company Filings Analytics Trends & Signals Q2 2022’, the Technology sector alone accounted for 53% of the total NFT mentions, followed by the Banking & Payment sector with 18% of the mentions.

Chourasia adds: “Some NFT discussions were also focused on the keyword ‘E-commerce’ showing the growing application of NFTs in the e-commerce businesses. Some examples are the collaboration of NIKE NFT with RTFKT, a developer of virtual sneakers for videogames, and Shopify’s effort towards token gated commerce.”