NFTs: Bear Market or Bubble Burst?

The current NFT market situation is not very good. Volumes and prices are down, including mainstays like Bored Ape Yacht Club and CryptoPunks.

At the beginning of the year, these collections “like wine and arrows”, giving those who plan to “go to the moon” a glimmer of hope, thinking that the second half of last year was just an unusual period. However, things were worse than imagined, and this was just the beginning of many projects returning to zero.

Gone are the days of minting an NFT and immediately setting a floor price for ETH. This is not a sign that investing will soon bring wealth to generations, but a bubble that is bursting.

The long-term downtrend is not surprising. In the past 24 hours, the NFT market has only fallen by around 0.75%, but we need to look at a longer period of time to make an accurate assessment.

Source: Forkast 500

Next, the NFT market fell by more than 7% in 7 days.

Source: Forkast 500

Over the 30-day time frame, the figure was even lower, down more than 8%.

Source: Forkast 500

In 60 days, the NFT market lost 17% of its value.

nft

Source: Forkast 500

The year-to-date decline is only around 9%, but if we look at the 2023 high from January 18th to the present, we can see that the NFT market is down a staggering 26%. As a result, profits for the year have been completely wiped out.

nft

Source: Forkast 500

It is quite interesting to look back at the time when the general public first joined NFT and inflated the bubble. Compared with January 1, 2022, the top 500 NFT projects have decreased by more than 88%. This means that if you invested $1,000 in one of the top 500 NFT projects on the blockchain, you would now own around $220 in NFT.

nft

Source: Forkast 500

The NFT market may have bottomed out, but remember, thousands of projects were created and made enough money to last for a while. They may last longer, but don’t have the innovations to attract new collectors. If they only exist by collecting royalties from cool-down projects, then the development path they have created by themselves seems to be coming to an end.

The entire space used to flock to collect NFTs, but given the amount of activity earlier this year and the fact that we’re just starting to enter another slowdown, NFTs still seem to have a long way to go. The question is “how deep will this market fall?”. Allow time to answer.

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According to Forkast News


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