The non-fungible token (NFT) market is going through a complicated period
After taking off in a big way last year, sales of digital works are collapsing. NFT transactions in US dollars saw a massive 25% drop between Q1 and Q2 2022. For example, one of NTF's most popular collections - Bored Ape Yacht Club (BAYC), based on the Ethereum blockchain has seen its price plummet to its lowest level since its inception. The collection has lost half its value in a few months...
Non-fungible tokens affected by the cryptocurrency crash
The non-fungible token market is based on the cryptocurrency market. With the complicated global economic context linked to the war in Ukraine, the cryptocurrency market (bitcoin, ethereum...) has fallen, and the NFT market has not been spared. Bitcoin, the king of cryptocurrencies, has fallen back below $33,000. As a result, investors are running out of cash to buy NFTs at the moment.
Are NFTs still a market of the future?
Beyond the current fall in the NFT market, it is important to note that NFTs are the future of digital art. A study by the famous firm McKinsey & Company predicted that the metaverse could reach a valuation of 5,000 billion dollars within a decade. NFTs are the "building blocks" of the metaverse.
What to remember!
The NFT market is expected to reach a value of $230 billion by 2030, as opposed to $8 billion at present. So don't lose hope and don't dwell on the current critical situation!