Average NFT values have dropped around 70% since February
The bubble looks like it’s bursting.
Everyone has been talking about non-fungible tokens, or NFTs. However, it looks like the NFT bubble may be bursting already. According to market research site NonFungible.com, the average price of NFTs has come down a whopping 70% from their high point just two months ago.
NFTs are digital certificates that aim to authenticate certain art or collectibles have become incredibly popular over the last few months. The NBA recently partnered up with Dapper Labs to develop NBA Top Shot, a digital collectible market where people can buy and sell certain highlights, similar to sports trading cards. Rock group Kings of Leon released their most recent album as an NFT.
While it is clear that NFTs have been an exciting new way for people to invest in particular things, the hype surrounding them has definitely created a sort of bubble that has been driving prices higher than they probably should be. NonFungible.com reports that the average price for an NFT has dropped to around $1,250 from its high of around $4,000 just in February.
NFTs are probably not going anywhere anytime soon
The sudden rise of NFT popularity in the market is not so different from a few things we’ve seen in the past. The bubble created here is similar to the dotcom craze of the early 2000s, and the housing bubble that burst in 2008.
Like those examples above, it doesn’t look like NFTs are going to be going away any time soon. Their unique way of bringing collectibles and art to the digital world is unique and ultimately a good idea. But it looks like they won’t be worth the incredible amounts that we have seen recently due to all of the excitement surrounding the technology. Like most markets, it will take some time for this market to stabilize, and I wouldn’t be surprised at all if we continue to see prices fluctuate for the near future.
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