Crypto

Is cryptographic art in critical condition?

The NFT bubble has already burst – Geeko

The beginning of 2021 saw a boom in the NFT market, these non-fungible tokens that certify the authenticity of digital work. Thus, several digital artworks have been sold for thousands or even millions of euros, prompting many speculators to invest in this new market. Alas, just a few months later, the NFT frenzy seems to have passed.

The latest market data released by Protos does show that the golden age of NFT is over. In early May, the market still hit $ 100 million in one day. A month later, he brought in just $ 19.4 million in a week. The NFT market lost almost 90% of its value in just one month.

In addition, the number of NFT virtual wallets has dropped over the past few weeks, starting with a peak on May 3. At the highest level, there were more than 12,000 of them. Today there are only 3900 of them. Investors looking for markets to invest seem to have lost interest in NFTs.

A simple break before resuming?

However, in recent months, several brands, artists and business executives have indulged in the NFT frenzy, offering digital certificates of authenticity for many of their works and products for sale. Selling digital artwork by artist Beeple for $ 69 million, as well as other artworks for such crazy sums, helped popularize this type of market, but also speculation, raising the stakes to the maximum when the bubble burst.

However, if the market falls, this does not mean that it will disappear. Digital art has existed long before NFT and the market explosion, and will continue to exist after the bubble bursts. Art collectors will always be there, and companies that have entered the market with their own NFTs should continue to offer them for sale, but this should be done at more reasonable prices.

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