According to Nonfungible.com, the NFT market could be on the verge of a quiet slump. Will the NFTs go to Zero or go back to the moon?
All markets tend to be cyclical, without exception. And the NFT market seems to prove this theory.
Sharp fall in the NFT market
From pixelated images and iconic tweets to real masterpieces that take years of hard work to complete, the hype for NFTs seems to be disappearing. Data from nonfungible.com shows that the average price of these tokens fell 70% from ATH in February 2021.
Currently, the average price per NFT in the market is about 1.4 thousand dollars, while it was 4.3 thousand dollars a month ago.
While the data cannot be denied, there is always some degree of flexibility in the comments. Since the introduction of the ERC-721 standard, NFTs have undoubtedly achieved incredible revaluations. However, trying to stereotype them all as the same group for a given statistic can be difficult and perhaps impossible.
In fact, as the NFT fever spreads, more and more companies and enthusiasts are encouraged to form a NFT in the hope of hitting the jackpot and making profits from the markets.
Generally speaking, the job is not in the creation of NFTs, but in their resale. Something similar happens with many collections such as baseball cards and even art in general. When a particular artist dies, the value of his works tends to increase because the number of works in circulation will no longer increase.
Is it a balloon?
The NFT state has been described by experts and analysts as a bubble and silent crash. In fact, Beeple, the artist who sold the most expensive NFT in history, believes the whole NFT phenomenon is a bubble. However, some have a more optimistic view of the situation and expect the markets to calm down after the initial bustle due to excessive community orientation towards this new product.
The NFT industry is still small, but the situation is quite similar to Bitcoin and other cryptos. Price fluctuations will continue as it begins to strengthen and prove its importance. However, some believe NFTs will remain here, even if it’s not a speculative component.