The NFT bubble trends
NFTs were a little-known, relatively narrow section of the crypto business until the beginning of 2021. In February of last year, Mike “Beeple” Winklemann famously sold a collage of his digital art at Christie’s auction house for $69.3 million, igniting a historic period of growth in the NFT sector. According to data from nonfungible.com’s Market Tracker, total global NFT sales averaged roughly 2,000 per day at the start of 2021, with a maximum value of a few hundred thousand dollars.
However, at the pinnacle of the market in August 2021, over 200,000 NFTs were sold every day, with the total value of transactions temporarily exceeding $400 million. Since then, the NFT market has cooled significantly.
According to nonfungible.com’s Market Tracker, the total number of daily NFT sales has usually been within a 10,000-30,000 range, with the occasional increase. Meanwhile, with the exception of the occasional rise above $100 million, the total value of daily sales has typically stayed in the tens of millions of dollars. Total NFT sales in March this year were valued at $2.435 billion, the lowest since July 2021, according to CryptoSlam data, while 661,748 people acquired NTFs, the lowest number since September 2021.
What an Analyst/Digital Art Collector thinks about the NFT bubble
In February, Colborn Bell, the founder and curator of the Museum of Crypto Art, was quoted in Fortune as saying, “I am prepared, I believe, for a devastating market catastrophe.”
There are too many vendors and not enough buyers in the NFT marketplace, according to Bell. “For artists, the entry barrier is substantially lower than for collectors… That formula, in my opinion, does not work.”
Meanwhile, digital art collector Pablo Rodriguez-Fraile stated that “clearly the energy and interest that we had at various times last year is no longer here.” “I believe we accomplished something that was not sustainable,” he said, referring to last summer’s high values and volume of sales. Modesta Masoit, director of DappRadar, an NFT research firm, was more optimistic about the market. He told Reuters last week that the market is “consolidating” after its rapid rise in 2021, rather than being in general fall.
“Everyone expected that there would be a time of consolidation… He explained, “It’s not going away; it’s simply consolidating.”
Social NFTs are the next growth areas
In 2022, demand for Bored Ape Yacht Club NFTs has not slowed significantly. On the contrary, since the beginning of the year, prices for the 10,000 various variations of the popular cartoon ape have continued to average well over $250,000. Last August, when much of the rest of the NFT market peaked, the average price was roughly $87,000. According to NFT market observers, the continued increase in the market for Bored Ape Yacht Club NFTs, according to NFT market observers, is indicative of growing demand for so-called “social tokens.”
Bored Ape NFT purchasers join an elite group of high-profile owners that includes celebrities like Paris Hilton and Madonna. Yuga Labs, the company behind the Bored Ape NFT collection, just received $450 million in investment for their NFT metaverse project. Owners of Bored Ape NFTs were given Yuga Labs’ new cryptocurrency ApeCoin last month, which has a market capitalization of over $3.7 billion after only a few weeks. Raoul Pal, a well-known former Goldman Sachs employee, recently commented that the market for Bored Ape NFTs was expected to develop, so he invested roughly $400,000. He screamed, “Social tokens are the BIG thing!”