A rapid 70% drop in the average price of non-fungible tokens (NFTs) is suggesting that the latest “crypto craze” may be disappearing – just as fast as it took the world by storm recently, Bloomberg’s experts pointed out yesterday.
According to data provided by Nonfungible.com, a platform that tracks multiple NFT markets, the average price of cryptocurrencies peaked at about $ 4,300 on February 22. However, the market has cooled significantly since then, as the average price dropped to around $ 1,400 through April 4.
Notably, the historic record coincided somewhat with the record sale of “Everydays: The First 5000 Days” – an NFT work of art created by cryptographer Beeple – for more than $ 69 million. Shortly thereafter, the average price of NFTs dropped to $ 650, although it rose briefly again to $ 3,600 on March 11.
At the same time, some experts have argued that, despite price fluctuations, it is not fair to call the NFT market a “bubble”.
Chris Wilmer, an academic at the University of Pittsburgh who also co-publishes a blockchain research journal, told the channel:
“It makes no sense to characterize a concept as a financial bubble. NFTs are not in a bubble any more than ‘cryptocurrency’ is a bubble. There will be crazes and irrational exuberance, but the cryptocurrency is clearly here to stay with us for the long haul and the NFTs probably too. “
NFTs are for “international swindlers and swindlers”
Beeple’s huge price tag made it the third most expensive piece of art ever sold by a living artist – behind only Jeff Koons and David Hockney. The latter recently revealed that he is not a fan of digital collectibles, calling them a tool for “international swindlers and swindlers”.
In 2018, Hockney sold his physical painting, called “Portrait of an artist (pool with two figures),” for $ 90.3 million through auction house Christie – the same one that recently sold Beeple’s artwork. During the podcast “Waldy and Bendy’s Adventures in Art” yesterday, Hockney argued that NFTs can be easily “lost” and cannot be compared to real physical objects.
Hockney noted:
“Things can get lost on the computer, right? And they will, in the future, be lost on the computer, even when the cloud starts working. There will be a lot about him, how will you find it? “
Although his description is quite broad, there may be some merit to Hockney’s concerns. This is because NFTs do not actually contain the artwork attached to them. In essence, these tokens are just encrypted links to traditional files hosted on a server. And if that server goes down, NFT owners won’t even be able to directly access the media files that their tokens represent (other than downloading them from other third-party sources).
Likewise, Hockney was also unimpressed with Beeple’s record-breaking work of art, calling it a collection of “silly little things”. He commented on Beeple’s art:
“I saw the pictures, but they looked like silly little things. I couldn’t find out what it was. “
Meanwhile, blockchain development startup Enjin recently announced the launch of a new decentralized network dedicated specifically to NFTs. Whether it’s a bubble or not, it looks like the technology is not going away anytime soon.
Take one edge in the crypto market
Access more cryptography and context insights in each article as a paid member of CryptoSlate Edge.
On-chain analysis
Price snapshots
More context
Apply now for $ 19 / month Explore all benefits
Like what you’re seeing? Sign up to receive updates.