Is the NFT Market Dead ?
Is the NFT Market Dead
#nft #nftmarket #garyvee #garyveenft
The market shone gloriously last year when wealthy cryptocurrency speculators spent billions of dollars on risky assets, driving up prices and profits. Now, six months after 2022, it looks bad.
Monthly revenue on the largest NFT market, OpenSea, plummeted to $ 700 million in June, down from $ 2.6 billion in May and a far cry from January's peak of nearly $ 5 billion.
At the end of June, the average NFT sale dropped to $ 412, from $ 1,754 at the end of April, according to NonFungible.com, which tracks sales on the Ethereum and Ronin blockchains.
Is It a Dip Or Death Spiral?
For critics, the collapse confirms the craze for buying such assets, blockchain-based tradable records linked to digital files such as images or videos, often works of art.
The Malaysian businessman who bought an NFT of Jack Dorsey's first tweet last year for $ 2.5 million last year had trouble getting offers for more than a few thousand dollars when he tried to resell it. in April.
But Benoit Bosc, global product manager at cryptocurrency trading firm GSR, sees the recession as the perfect time to create a corporate collection of NFTs - the cryptocurrency equivalent of traditional fine art banks put on display to impress customers.
Last month, GSR spent $ 500,000 on NFTs from what Bosc calls "blue-chip" collections, those with a large online fan base.
His purchases include a Bored Ape Yacht Club NFT, a set of 10,000 cartoon monkeys made by US company Yuga Labs and promoted by Paris Hilton and Jimmy Fallon.
Such is the hype surrounding Bored Apes that Yuga Labs raised $ 285 million in April by selling tokens that they believe can be redeemed for land in a Bored Apes-themed virtual world that has yet to be released.
However, the average selling price of a Bored Ape dropped to around $ 110,000 in June, after halving from the January peak of $ 238,000, according to market tracker CryptoSlam.
In his New York office, Bosc has set up three screens to display his NFTs, which include various pixelated characters and a Bored Ape purchased for $ 125,000.
What's an NFT?
NFTs are tokens that we can use to represent ownership of unique objects. They allow us to tokenize things like art, collectibles, and even real estate. They can have only one official owner at a time and are protected by the Ethereum blockchain - no one can change the ownership record or copy / paste a new existing NFT.