The average price for an April 5 NFT was about $ 1,256 – down from more than $ 4,000 at the end of February, according to market research site NonFungible.com. Data from The Block, another cryptographic research firm, shows a similar decline in both NFT prices and sales.
NFTs have been a craze for investment and pop culture in recent weeks, leading some to wonder if the frenzy is a market bubble fueled by wealthy and younger traders full of money for stimulation.
A JPEG file by digital artist Beeple recently sold for $ 69 million at Christie’s. NFTs have contributed to the rise in the price of sports trading books. The rock band Kings of Leon has released their latest album as NFT.
NFT mania has helped increase the value of ethereum, the cryptocurrency whose blockchain network is used for a large number of NFT transactions. Ethereum prices have risen by more than 180% this year, an increase that exceeds growth the price of bitcoin (XBT).
Shares of collection companies, such as the figurine manufacturer Funko (FNKO) and the Hall of Fame Resort & Entertainment (which owns an NFL-themed village in Canton, Ohio) have also grown due to partnerships to develop non-fungible chips. Funko announced last week that it is buying a majority stake in TokenWave, LLC, the developer of the TokenHead application and website that tracks NFTs. Hall of Fame Resort & Entertainment entered into a partnership with the marketing company at the end of last month Dolphin Entertainment (DLPN) to develop NFTs for football,
Supporters of NFTs emphasize that each symbol is unique and cannot be reproduced, which creates a value of scarcity that is good for both the artists who make them and the collectors.
Funko CEO Brian Mariotti said that in a statement on the TokenWave agreement, he said that the investment in NFTs is accompanied by the digital and physical collection business.
“The NFT world is all about content,” Mariotti said.
This may be true, but the sharp and sudden rise in the value of NFTs and the more recent withdrawal is reminiscent of some other similar historical bubbles in the market, such as the tulip mania in the 1600s, the collapse of the dot com / tech of 2000 and bank stocks, and house prices in 2008.
NFTs may be here to stay, but they may not be worth the staggering amounts of money some people have exceeded in recent weeks.
Even Beeple, aka Michael Joseph Winkelmann,
joked with CNN’s Julia Chatterley in March that he could be the biggest winner of what could turn out to be an NFT bubble.
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