As crypto crashes, the market has seen some of the largest NFT collections drop by up to 20% of their floor price while sales have 92% from this time last year. But is this just expected volatility or the beginning of the end for NFTs?
Tamas Muller, crypto expert at international broker comparison site BrokerChooser shared his thoughts on the recent downward trends of NFTs.
NFT Prices Plummet
“After the recent hype of NFTs, we see the market is cooling off. The market is very new and immature so volatility is very likely, and there’s also a significant imbalance in supply and demand. On top of that, the overall financial market is going down, with crypto crashes like Luna’s.
In this situation, it’s no surprise that investors are moving away from riskier and more “exotic” instruments like NFTs. But we can also see that the NFT space is not totally dead; new collections are coming, and big NFT brands are working hard on new developments.
Recently Yuga Labs (the company behind Bored Ape Yacht Club) successfully launched Ape Coin and came out with their metaverse called Otherside. Their effort also shows that in the current phase it’s essential to expand the utility of NFTs, adding more value to them than just the fact of their existence.
I’m sure that with such developments we’ll see another rise in NFT popularity in the future, but with having more utility, it might not happen in the art/fashion field like it did last time.”