You have to bring a parachute if you like to get high – And from the height, the NFT have taken it. A lot. Too much perhaps, and too quickly.
The NFT bubble, the term that means nothing
The term “bubble”, internet bubble, Bitcoin bubble, NFT is used, sometimes wrongly, often wrongly, very rarely rightly. As soon as something works well, during a decline (or fall), the phrase on everyone’s lips is “the bubble has burst”.
Is this really the case for NFT (Non-Fungible Token)? If we look at the figures, indeed the sales of NTF are falling. For example, Opensea: the current largest NFT sales platform, after a flying start in mid-2021, saw its numbers skyrocket until May 2022, and since then it’s been plummeting. The platform goes from more than $400 million transactions, to 5000000 August 28.
By taking the gondola ends of the platform, namely Bored Ape Yacht Club and Cryptopunks we notice that the curve does not go in the right direction.
The average price of a monkey on 90 days is of 99ETHversus 89 if we compare just over the last 14 days. The floor price is 77.7ETH.
Same observation with the Cryptopunks.
We tumble from an average of 69.4ETH over the past 90 days, 38.5ETH over the past 14 days. Almost 50% reduction. The January sales don’t cause such carnage.
But, is this really the end of NFTs?
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You have to know how to take a step back
Already, the announcement made and circulating on all networks is linked to OpenSea. Although it remains the current market leader, it is not the only existing platform.
So, are the competitors affected too? The answer is yes. rare, Solanart, LooksRareall sales and exchange platforms are beginning to cross the desert.
So the problem is everywhere. But what is it related to? Is it really a lack of interest in NFTs?
First, you have to keep in mind that NFTs are still something new, recent. And when something is new and it works, then it is used everywhere, all the time and no matter how. Is this current purge a bad thing when we see the number of collections of NFTs with the heads of dogs, dead coypus or monkeys copied on BAYC circulating? Soulless, useless collections, only intended to bring money to their creators before leaving with the cash register?
Second thing to consider, the market! If we look at the bitcoin price over a year, the observation is simple.
What if this was just the beginning for NFTs?
And even if NFTs are sold mainly in ETH (or WETH on other blockchains), do not be fooled. When the Bitcoin cough, everyone has a fever! And where all the projects worked and sold a year ago in the middle of a bull-run, when the market doubts, many leave their wife and child to go far with the little remaining savings.
So is it really the end of NFTs ? Without a doubt, the answer is no!
Is this the end of totally busted NFTs with zombie bunnies? Maybe ! And if so, then all the better. But the collections historicaleven if they suffer a decline, will rise when the market recovers.
And keep in mind that we are onlyat first of the use of NFTs. We have certainly only explored 3% of the possibilities offered by this technology. So let’s be patient! And let’s stop talking about a bubble every time the market goes down.
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