The blockchain universe in general has suffered greatly in the winter of 2022. Not only has the cryptocurrency industry experienced a major downturn, but the NFT industry has also had its share of difficulties.
However, if the cryptocurrency market seems to be doing better in 2023, it is not not really the case for that of NFTs. Indeed, while the crypto market has managed to re-enter the trillion dollar mark, the value of the most popular NFTs has decreased notably with recorded declines of up to 95%.
The gradual fall in the value of NFTs
Despite the crisis experienced by the sector in 2022, several collections of NFTs released on the market have enjoyed strong popularity. However, their value fell during the year and many collections began to decline in value.
These include NFTs like Doodles, Invisible Friends, Moonbirds and Goblintown which saw their value in Ethereum dropped by 95%. At the same time, the most popular NFT collections, which were the basis of the industry’s initial success, have also experienced a average drop of more than 40%.
According to the data collected on NFTGo, the index Blue Chip fell to 7,446 ETH from its yearly high of 12,394 ETH in July 2022.
Nevertheless, NFT collectors do not seem to be discouraged by these massive losses. For most respondents, further depreciation would be inevitable for the market, while a handful of individuals believe that it’s a good time to invest, because they anticipate a strong comeback of the market.
Additionally, while it is true that there has been a 30% decrease in buyers and a 32% increase in sellers, statistics reveal that the number of prime NFT holders has increased by more than 90% over the past year.
For most crypto analysts, this massive drop in value associates with the current state of the Metaverse. The current downtrend in the NFT market is a reflection of the depreciation in the value of Metaverse properties in 2023. In 2022, these properties were the best virtual land for investment.
New investors are flocking to the NFT market
Despite these multiple financial setbacks, the NFT ecosystem remains very attractive to many investors. On May 27, Peter Schiff, who is known for his skepticism towards crypto-currencies, has launched an NFT project on the Bitcoin blockchain via ordinals
Schiff a unveiled an NFT art collection named “Golden Triumph”. The latter represents a human hand holding a gold bar. According to the latest news announced, the collection of digital art objects will be sold at auction divided into two parts which will begin on June 2 and end on June 9.
It’s pretty obvious that the ad has elicited mixed reactions from the crypto community. While many judge this collection of NFT finding it disconcerting or amusing, others see it as hypocritical given Peter Schiff’s negative view of cryptocurrencies.
Source : Cointelegraph
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