Non-Fungible Tokens (NFTs) seem to be everywhere these days. Some of them are really valuable, while others barely start their journey. However, numerous companies and celebrities are deciding to create their own collectibles while the fever for them is here. For how much time will it last, though? Because NFTs sales are plummeting this year.
According to NonFungible, general NFTs sales have decreased by over 44% since the beginning of 2022. The market capitalization of the sector dropped as well. By December 2021, it surpassed $16.7 billion [DappRadar]; while now it is at $10.1 billion [CoinMarketCap]. That’s a fall of over 39% year-to-date (YTD). The average price per NFT also dropped by around 41% in the same period.
So, what can we expect from NFTs now? Are they crashing inevitably or is this just a pothole? Well, there are different theories and predictions.
NFT Winter vs. Future Metaverse
Some investors and experts believe that a so-called NFT Winter will come eventually (or maybe, are we already there?). As explained by the entrepreneur Gary Vaynerchuk, (aka Gary Vee), short-term greed is probably overvaluing these digital items. Therefore, there will be a point break where only the strong projects with real proposals will be able to survive. Meanwhile, the prices of NFTs, in general, would plummet.
“The conversation’s about to get very interesting when we hit an NFT winter because there’s way too much short-term greed and supply and demand issues (...) look what happened in 2000, March/April when the whole Internet craze crashed. Yes, everything got caught up in that undercurrent… Short-term behavior overvalued everything. It got washed."
This wouldn’t be the end of NFTs, though, but the start of a more healthy and stable market. However, for now, we could only be passing through a pothole. Back in June 2021, it was reported that the NFT market crashed by nearly 90% from its peak, but it recovered very well in the upcoming months.
Additionally, we can talk about the future Metaverse: NFTs will have a starring role in this digital world, either as avatars, accessories, or properties. As DappRadar disclosed in its report:
"Boosted by the narrative around the metaverse, blockchain-based virtual worlds, and all metaverse-related projects experienced a considerable value appraisal. The value of lands within these virtual worlds skyrocketed, appreciating as much as 500% and being sold as high as $2.5 million. The tokens supporting this narrative were amongst the best performing cryptocurrencies, signaling the potential of this virtual space.”
If not all of them, we can conclude that NFTs are here to stay.
Wanna trade some NFTs safely?
Despite the environmental criticism for its current Proof-of-Work (PoW) mining, Ethereum is still the most popular blockchain to issue and trade NFTs. As indicated by CryptoSlam, over $21 billion in NFT sales have been done on Ethereum. It follows, with much less volume, Ronin (Axie Infinity), Solana, Flow, and Polygon.
This means that to issue and trade most NFTs, it’s necessary to possess Ethereum (ETH) as well to pay some fees. You can find this currency and many more in Alfacash Store, where the users can buy and sell over 19 cryptocurrencies with EUR. This is the fastest and safest way to trade digital currencies in the European Union, and we’re constantly improving our services. The platform offers SEPA transfers for incoming and outgoing payments with cryptocurrencies in a fully non-custodial, regulated, and automatic process.
And while the platform might not be as popular as Binance and the likes, it supports most of the popular cryptocurrencies like Bitcoin, Ethereum, Ripple, USDC, USDT, DOGE, etc. Alfacash Store has set out to become the most convenient way for providing financial services to everyone regardless of their location.
To experience their advantages and more nice surprises for yourself, visit Alfacash Store now!
