While it hasn’t been set in stone yet, all signs point to the NFT market being a fad. These ugly and expensive “collectibles” have seen their trading volume plunge down to 97%, proving they weren’t meant to last.
Corporations and cryptobros will likely keep pushing them, with many seeing them as integral assets for the metaverse. However, this downward trend may be the end of the line.
The fall of the NFT?
Despite doing well way back in January, Bloomberg claims that the NFT industry saw its value decrease to $466 million last September. OpenSea, the largest marketplace for these collectibles, has also seen the number of transactions decrease from 2.7 billion to 9.34 million.
“It was pretty obvious there was a bubble element,” said Andrea Baronchelli, a professor at City University of London who studies the crypto and NFT space. “The hype surrounding NFTs meant that a normalization and fall was inevitable.”
Admittedly, the numbers for these digital items are still quite high after the collapse but it's still a downfall nonetheless. It might be too early to declare these collectibles dead but when cryptobros start abandoning ship, things don't look good.
Officially a fad?
Market crashes can be unpredictable but the fact that it’s been constant isn’t good for the NFT or its enthusiasts. Seeing NFTs and cryptocurrency go down is quite shocking since they were the talk of the internet when they arrived.
That being said, it’s hard to say if these digital tokens will remain dead since they still cost a fortune. The aforementioned Andrea Baronchelli doesn’t think they’re going anywhere, saying “I don’t think we’re going towards an extinction of the market.”
Will the NFT finally die? Or is it going to live forever?