Erik Weijers, 2 months ago
As many crypto investors are hurting, the NFT space is probably hurting most. Investors paid more than 450 thousand dollars for a Crypto Punk a year ago. It's 80 thousand dollars now. So, does this mean NFT's are dead? That's unlikely, considering the developments in the NFT space.
What goes up hard, must come down - hard. NFT projects have dropped harder than many coins. While Ether has dropped around 83% from top to bottom (roughly from 4800 to 900 dollars), NFT project Bored Ape Yacht Club (BAYC) has dropped from 160 ETH in floor price to 50 ETH two weeks ago. That is a 70% price drop measured in ETH. But it is worse in dollar terms, as ETH has plummeted too. Go look up the charts if you dare...
Still, as the markets are depressed, some collectors might get interested. Take the Crypto Punks, the 'OG' NFT project. Even though most of us don't have 80 thousand dollars in change, this price might be a steal for the more wealthy among us. Owning a Punk means owning a vital part of digital art history. Will that be valuable? IF you believe that digital art is here to stay, then it's hard to imagine the Punks falling from grace. The fact that they were the first, can't be copied. What Bitcoin is to crypto, the Punks are to NFTs.
A few Crypto Punks
Of course, there are also slightly less prestigious projects, with more affordable prices. Moonbirds dropped to a floor price of 7 ETH. The Azuki's, in August, got close to 5 ETH. Not cheap, but closer within reach.
So, are NFT's dead now? Were your parents right at Thanksgiving, laughing at your overpriced jpegs? Granted, prices might have been a tad inflated in the bull market. But that doesn't mean the invention isn't real.
What invention? The option of owning and trading digital art. Never was there a liquid market for art. Just imagine trying to sell the painting on your wall: good luck with that. And now try it with your NFT. Within hours, if you're not to stingy with your floor price.
Also, NFT's are more than just fringe digital art. It's becoming a consumer market. Take a look at just a sample of recent corporate NFT projects.
The list goes on. Big brands have been creating NFT marketplaces (note that they have often used blockchains like Ethereum, Polygon and Flow). Although the prices are depressed, the fundamentals look quite good. We are in a bullish NFT winter.
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Of the many NFT projects that are trending, two are worth contrasting. They are trending for different reasons. The one that is in the spotlight for the wrong reasons is the aborted Porsche mint. The one that is gaining traction, is the Punk6529 meme collection. What makes their approaches different?