The average price for an NFT on April 5 was around $ 1,256 – up from more than $ 4,000 at the end of February, according to market research website NonFungible.com. Data from The Block, another cryptography research firm, shows an equally large decline in both prices and NFT sales.
NFTs have been an investment and pop culture craze for the past few weeks, leading some to wonder if the frenzy is a market bubble fueled by wealthy and young investors full of stimulus money.
A JPEG file by digital artist Beeple was recently sold for $ 69 million at Christie’s. The NFTs helped raise the price of collectible sports cards. The rock group Kings of Leon released their latest album as an NFT.
The NFT craze helped to increase the value of ethereum, the cryptocurrency whose blockchain network is used for a large number of NFT transactions. Ethereum prices have risen more than 180% so far this year, an increase that exceeds the peak in bitcoin price (XBT).
Shares of collectible companies, such as the manufacturer of figurines Funko (FNKO) and Hall of Fame Resort & Entertainment (which has an NFL-themed village in Canton, Ohio) also skyrocketed thanks to partnerships to develop non-fungible tokens. Funko announced last week that it was buying a majority stake in TokenWave, LLC, developer of the TokenHead application and website that tracks NFTs. Hall of Fame Resort & Entertainment signed a partnership last month with a marketing company Dolphin Entertainment (DLPN) to develop football NFTs,
Proponents of NFTs point out that each token is unique and cannot be replicated, which creates a scarcity value that is good for both the artists who create them and the collectors.
Funko CEO Brian Mariotti noted this in the statement about the TokenWave business, saying that investing in NFTs marries the digital and physical collectibles business.
“The NFT world revolves around content,” said Mariotti.
This may be true, but the sudden and sharp increase in the value of NFTs and the most recent downturn are reminiscent of some other similar historical market bubbles, such as the tulip craze in the 1600s, the dot com / technology crash in 2000 and stocks of banks housing prices in 2008.
NFTs may be here to stay, but they simply may not be worth the huge sums of money that some people have spent for them in the past few weeks.
Even Beeple, also known as Michael Joseph Winkelmann,
played with CNN’s Julia Chatterley in March that he may be the biggest winner of what could be an NFT bubble.
.Source
Related
