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In March 2021, someone paid $2.9 million for the NFT of the first tweet in history. Thus began a firestorm for these digital assets consolidated with Beeple NFT,
In March 2021, someone paid $2.9 million for the NFT of the first tweet in history. Thus began a firestorm for these digital assets consolidated with Beeple NFT, which sold for $69 million. No one understood how someone paid $1.36 million for a pixel’s NFT – most of us still don’t – and the idea seemed to have taken hold among investors and artists. Now the house of cards seems to be crashing.
When NFTs rule the world. In January 2022, NFT sales were at the peak of the wave: $12.6 billion in revenue was generated, thus consolidating the second half of 2021, when the term NFT became the ubiquitous concept.
NFT sales in recent months. Guardian chart based on Chainalysis data.
Sales are falling. Sales have plummeted since then, but in June the thing completely collapsed and barely surpassed $1,000 million, according to Chainalysis. The data is dire given the number of investors this segment has attracted.
If crypto goes bad… The main reason for this critical drop in sales lies in the performance of the cryptocurrency market, which is strongly linked to the NFT market. Those in charge of Chainalysis explained that “this decline is clearly linked to the massive slowdown in the cryptocurrency markets.”
Millionaires lose. The situation resulted in an absolute depreciation in the value of NFTs purchased at the gold price. In April, an attempt was made to resell the famous NFT of Jack Dorsey’s tweet: The process was interrupted when it was seen that the maximum bid reached was $14,000.
Speculation. At OpenSea, for example, sales fell from 2,600 million in May to close to 5,000 million in January, to $700 million in June. The median price per NFT fell from $1,754 to $412 at the end of April, according to NonFungible.
“We’ve seen so much speculation and expectation about these types of assets that we’re seeing this drop now because people realize they can’t become millionaires in two days,” said exactly one of the co-founders of this company.
Time to invest? Some believe this is exactly a good time to bet on NFTs. The most popular ‘blue chip’ NFTs like Bored Ape Yacht Club have dropped just 1% and the promise is that NFTs will be particularly relevant in the gaming world. This, of course, remains to be seen.
Source: Xataka
Alice Smith is a seasoned journalist and writer for Div Bracket. She has a keen sense of what’s important and is always on top of the latest trends. Alice provides in-depth coverage of the most talked-about news stories, delivering insightful and thought-provoking articles that keep her readers informed and engaged.
