Has the NFT bubble burst? Not yet.
In May 2021, the Wall Street Journal from The Art Newspaper reported that NFT sales were “flatlining.” Data from NonFungible, a data analysis company, looks like a significant number. Active NFT wallets have fallen 88% from 119,000 in September last year to 14,000. Individual sales also fell from a daily average of 225,000 to 19,000, or one-fifth remaining.
This is much different compared to 2021, where there were transactions of $17 billion for NFT transactions. This creates excellent expectations for artists as well as a parody for collectors who hope to make a profit from their collections.
Quoted from theartnewspaper.com, NonFungible’s data is incomplete. Because they are still entering data from Q1 while uploading the research, it is already close to Q2. Now it’s about to enter Q4, and things have changed — lots of lucrative new collectables like Moonbirds and Otherside.
Louisa Choe, an analyst at Nansen, said that starting in April 2022, the number of NFT sales began to rise again. Indeed, there is a behaviour change, and the “blue chips control 83% of the NFT market share.”
On the other hand, NFT collections behave almost like assets in general. An example is the Bored Ape Yacht Club which has a large and largely interchangeable community that guarantees some degree of liquidity. The base price also determines the price. Collectors who want to have BAYC tend to look for the lowest prices if they wish to collect BAYC.
From the outset, we have recognized that NFTs are a broad and diverse asset class. Sometimes they behave like assets in the traditional art market, with works and collections from famous artists having a high value and believing that resale prices will be higher.
It isn’t easy to judge it in terms of market principles.
What’s interesting is that currently, NFT can also be a representation of its users. An example is the Bored Ape Yacht Club which grants exclusive rights to its holder. Such as access to events, intellectual property, more tokens, and message boards.