Crypto News

CryptoKitties Transaction Volume and Values Decline Spectacularly

Even though the CryptoKitties project has attracted a lot of attention, it seems things are not evolving in the right direction. More specifically, there’s been an overall decline in sales, which goes to show how difficult it is to keep buyers and investors engaged for longer periods of time.

The Rise and Fall of CryptoKitties

Earlier this year, the concept of tradeable blockchain assets was revitalized in a rather unique way. CryptoKitties is one of those projects which got a lot of attention and even attracted millions of dollars in funding. That was considered to be a major success, even though there were also a lot of questions as to whether or not the concept could keep people engaged.

While things seemed to work out quite well at first, they have since taken a dire turn. The CryptoKitties project raised $12 million in funding from VCs such as Andreessen Horowitz and Union Square Ventures. It was considered to be a major success at the time, especially when considering blockchain collectibles had not gained any real traction up to that point.

The situation only got better when CryptoKitties decided to create a special asset for WikiLeaks. It was another way of bringing more attention to the project as well as the whole concept of issuing tradable assets on a blockchain. One would expect things to have continuously improved from that point forward, but things hardly ever work out that way in this world of innovative technologies.

For CryptoKitties, things soon began to go downhill. Despite the initial interest in this project and the associated blockchain assets, it seems overall interest has all but evaporated. Various blockchain analytics sites report that the number of CryptoKitties-related transactions has declined significantly in the past few months. With a near 99% drop, it seems to be a matter of time until this project is all but forgotten about.

Whether or not the CryptoKitties team has a plan to regain its popularity in the near future remains to be seen. It seems the co-founder of this project blames the rising costs of processing transactions on Ethereum. That issue alone doesn’t entirely explain the drop-off in transactions, though.

It appears the project’s creators are not too concerned over what the future holds in this regard. After all, the project is still in the relatively early stages, and the number of transactions may pick up sooner or later. Combined with a decline in the values of CryptoKitties assets, it seems this project will have a tough road ahead.


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