Is NFT Dead – Is The Hype Over? In the world of Blockchain, 2021 can surely be the year of NFTs because the Non-fungible exploded and gained a lot of hype this year. The Bored Ape NFTs and digital punks sold for millions of dollars created seemingly unsustainable NFT hype.
But is this hype gonna last forever? This is surely a point to ponder for the people who have invested or want to invest in this digital asset.
As NFT created great hype, it attracted a lot of people towards it, and it’s worth going on increasing. But, if all of its glory ends, it will be a significant loss for many people.
If you are among those people who are related to NFTs, want to know How are NFTs doing now? Or Is the nft market dead already? Don’t sweat out because we will tell you everything that you should expect from NFTs. So, let’s get straight off into this article.
Is Nft Worth Buying?
As you already know that NFTs gained popularity in a short period, and some investors made millions out of it. But is it really worth this attractiveness and value? And, will it remain so? There are still doubts.
Vignesh Sundaresan, a buyer of artwork worth $69 million through an auction, believes that NFTs are an authentic store of value. And they represent how the world is now viewing art and collectible assets. In one of his interviews with CNBC, Sundaresan claimed that NFT would create a new commodity class that unites buyers and sellers all around the world.
However, the NFT he has purchased perhaps is merely a digital art with a unique asset address that anyone can copy. As a result of this, many people are uncertain about the value of NFTs. Well, only time can tell if as Picasso or a pet rock in terms of worth.
However, the value of NFTs is questioned by some individuals in the cryptocurrency industry. According to litecoin founder Charlie Lee, the ability to duplicate digital assets diminishes the value of owning the NFT. He further argues that he sees a lot of parallels between 2021’s NFTs, 2017’s ICOs, and 2013’s altcoins. He said, “Few will hold and have value; most won’t.”
According to him, NFTs are creating artificial scarcity. And because of the nearly zero art creation cost, the artists will try to cash in on this craze, and it will ultimately flood the market with NFTs. The outcome will be an overpowering supply over the demand, and the prices will crash.
Why Is The Nft Market Crashing?
The hype NFTs created in 2021 made it obvious that it is going to last forever because people were so into it. But later, it is noticed that the prices of non-fungible tokens were now crashing.
A recent report by NonFungible.com claimed that the worth of NFTs has collapsed. From its peak in February 2021, it has dropped down by almost 70 percent.
In early 2022, these No-fungible tokens that give individuals exclusive possession over digital art blow up in popularity. They were sold for millions of dollars despite the fact that they could get copied.
But, it didn’t last for too long, and the market significantly slowed down. During its peak in mid-February, the average worth of NFT was $4,300, which has now come down to $1,400.
One of the tech defenders “Wilmer” argued that cryptocurrency and NFTs are probably going to stay with us for the long term. It can be because of people’s obsessions and irrational enthusiasm for them.
And the drop in the NFTs value must not be shocking to anybody. Because they are traded using Cryptocurrencies which are characteristically unstable and can fluctuate over time.
The NFT market is undoubtedly facing a downfall. The values of best-known NFTs like Bored Ape slipped. A Bored Ape Yacht Club NFT sale seemed like a great transaction of $224,028.62. But, it represented a loss of $67,799.54 for the seller, who purchased it at the end of January.
But at the end of the day, people can’t help but wonder how all the extravagant claims about NFTs have changed? And Why are NFT prices dropping?
This drop can be because of inflation or regulatory inspection of NFTs by the Securities and Exchange Commission.
The passionate digital art collectors have warned that a “cataclysmic market crash” can occur because NFTs are versatile and easily accessible. But, it hasn’t completely ended the era of NFTs, as there are still people eager to buy NFTs.
Is Nft Still Popular?
There is so much controversy related to NFTs on the internet. You can hear people say the NFT market is dead, which indeed makes you wonder, “Are Nft dying?”
Well, there is no final answer to this till now because experts also remain split on it. Some claim it’s a bubble, while others scream that it’s going to create new ownership opportunities for the investors. On the contrary, developers are considering them the next form of monetization.
The NFTs in 2021 broke through into the mainstream and hit sales of $25 billion, which drew the attention of people towards them. Many celebrities and famous brands have exploded across the worlds of music, art, sports, and more.
If we talk about the popularity of NFTs right now, it might not be appealing from an investor’s perspective because it is riskier, and their value is declining.
On the other, for the people who are buying NFTs for fun, its popularity remains relentless. It’s because their decisions are based on affection, not on investment, and they buy them out of their love for art.
What Are Nft Problems? Let’s Find Out
NFTs are losing their hype; there might be some reasons. Let’s find out what they are.
- There is smart contract risk and NFT maintenance. The hackers are capable of attacking the DeFi network and stealing your cryptocurrency. It is possible because the security of smart contracts is not much efficient.
- Determining the price is another problem associated with NFTs. Because of no fixed standards, the price fluctuates, and people can’t determine the factors that might drive the price of NFT.
- With the increase in popularity of this asset, there are cyber threats and fraud-related issues too. Some developers make real-looking sites and sell their NFTs. It’s nearly impossible to find out if they’re real, and buying such fake NFTs will cost you much.
- Moreover, the prices were high first because of scarcity. But, now the creators are creating a lot of NFTs, which is overpowering the supply over demand, making NFTs lose their worth.
Summing all up, NFTs were the talk of the town back in 2021, but now the game has taken another turn. Some people assume that nft is dead, and some are looking for a solid answer: Are nfts dead 2022?
However, there is no exact answer to this, but the value of NFTs has been seen dropping down. Investors are not very happy with this price trend. But people who are buying NFTs just for fun and their affection for art it’s not bothering them much. So, there are still some people who passionately want to buy NFTs no matter what.