Are NFTs Going Down?
The messages about NFTs sold for insane amounts of money are getting rarer.
Even some celebrities can’t seem to lift their NFT projects off the ground.
So is the hype over? Is the bubble going to burst?
Yes and no.
In this post, we will discuss the types of NFTs that kept afloat in this market environment.
For the sake of making things easier, we will divide NFTs into art and utility-driven ones.
Both prices and demand for art NFTs seem to be on the decline.
The ones that are best at handling the decline seem to be culturally significant tokens.
Those NFTs are very rare, and it’s hard to predict what exactly will “hit the nerve” of the public.
The most recent example is CryptoPunk 7523, sold for $11.8 million. This NFT can relate to all the COVID challenges people went through and are still facing.
In the coming months, we think we will see a few more sensational NFT sales. But after that, NFTs that are inexplicably worth millions will be as rare as bizarre Among Us chicken nugget auctions on eBay.
Despite the volatility of the crypto market, the dapp industry is growing.
More and more dapps appear on the market offering NFTs with usability. Those tokens support the main functionality of the dapp and provide holders with both usability and value.
The biggest value driver in today’s utility-driven tokens is the NFT + DeFi combo. It allows for more earning opportunities and additional usability layers.
Usability-driven NFTs have additional factors that protect their value from the whims of the general market.
To find out how to assess the utility value of an NFT, check out our recent post here.
We hope this helps you navigate the world of NFTs.
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Originally published at https://blockchaincuties.com/blog/are-nfts-going-down/ on June 14, 2021