The NFT Market Bottom

What will cause it to recover and what will it look like

This feels like the last crypto bear market bottom. In 2019–2020, the consolidation went on for over a year, and having sat through that, I’m seeing some similarities with the current NFT market.

Note: I’m specifically referring to the NFT market, and current market sentiments. It is still dependent on the crypto market and other factors that might lead to its recovery.

Bear fighting bear, created on Midjourney.

What happened during the bottom of the last crypto winter?

1. Lack of buying or selling interest

Post-ICO boom, it took a while for the unsustainable projects to run out of funds. The consolidation period was very long but the turning point was when the sellers were exhausted, AND there was no retail buying interest.

2. Valuations don’t make sense

To be fair, crypto valuation is always subjective, as will NFTs. With NFTs, there might be certain benefits like being tied to physical goods, a club membership that which we can assign a dollar value. For me, when market do not recognise the dollar value of certain NFT projects, that’s a sign. Of course, a good chunk of value is still subjective, so you gotta find your own benchmark here.