NFTs Have Entered the Chat
NFTs have entered the entertainment, sports, political, fashion, and creative arenas over the past few years. The worldwide buzz around NFTs has Artists creating designs for legacy brands. All kinds of cool and edgy Crypto art have come to bear. But how long will the NFT craze last?
NFTs (non-fungible tokens) are blockchain-based assets representing a digital file such as an image, video, or item in an online game. Some of the most expensive NFTs have sold for millions of dollars. On December 4, 2021, pseudonymous artist Pak (an artist collective) broke the record for the most expensive NFT in the world. The piece, titled “The Merge”, sold for $91.8 million dollars on the Nifty Gateway site, one of the most important NFT marketplaces on the market. What’s interesting to note is that the NFT is divided into 266,445 digital units shared between 28,983 buyers.
But Q3 in 2022 has not been kind to the NFT marketplace. Sales have dropped sharply as the Crypto Winter has buyers waiting until more market-friendly times. Blockchain tracker DappRadar reported that the third quarter of 2022 saw $3.4 billion in NFT sales. This is down from $8.4 billion the previous quarter and $12.5 billion at the market’s peak in the first quarter of the year. While the traditional art market was quick to jump on board to purchase NFTs in the beginning, sales have slumped, especially for this more selective crowd. The NFT craze has wained.
So, where will the NFT marketplace go in 2023? Market volatility plays a considerable role in the value, and the “trend” factor impacts its worth just as much. If the goal is to make money, long-term investors should understand how NFT price behavior works. Like a good stock or piece of real estate, the key is to stay up to date on how an NFT is trending. Always be on the lookout for the next big thing.