Non-fungible tokens are starting to go out of fashion following the fall in cryptocurrencies. Nevertheless, some irreducible people undoubtedly think the opposite.
Is the end of NFTs less close than we think?
At the beginning of May, the crypto crisis still seemed far from the NFT economy. Despite the loss in coin value that transformed the price of digital artwork, the market seemed to be holding up well. This was without counting these last days, very hard for the industry, which completed the economy of non-fungible tokens.
Indeed, NFT platforms have seen their volume drop by nearly 12 billion as more and more investors lose interest in the market. The price of works continues to fall. Jack Dorsey’s first tweet, which was turned into a non-fungible token and then resold for $2.9 million, is now worth just $23. Real proof that this NFT economy is collapsing. But while we were predicting the bursting of a speculation bubble, it seems that it is the domino effect of winter that is dealing the deathblow to NFTs.
Nevertheless, die-hard enthusiasts continue to believe that the market will recover. For them, the NFT economy continues as if nothing had happened. At the NFT.NYC event, which brought together the community of enthusiasts from the big apple, NBC News met some of these defenders of the industry. Even if the prices drop, the projects do not cease to see the light of day.
Most attendees who spoke to NBC News expressed a mixture of optimism and inevitability regarding NFT technology. Many consider NFT technology to be in its infancy and it’s time for people to experiment with their own projects. David Angelo, who started an NFT art project with three friends called Naughty Giraffesa collection of 10,000 giraffe designs, said it has confidence in the technology for the long term.
Extract of the article from NBC News regarding the NFT.NYC event
An enthusiasm that some companies also share. Binance recently announced the launch of its collection of digital products in partnership with Cristiano Ronaldo. In addition to bringing NFTs to Instagram, Meta recently released a guide advocating for non-fungible tokens.
We believe that NFTs have the potential to be an essential part of how we form our online identities, access new experiences, and interact with others in the metaverse.
Excerpt from guide NFT published by Meta
A backlash is still possible
If the NFT market nevertheless continues to advance as if nothing had happened, the sword of Damocles still remains raised above the market. Indeed, the good will of enthusiasts will not be able to do anything against a new collapse of cryptocurrencies which could permanently condemn the economy of non-fungible tokens. Some works could end up being worthless.
Likewise, the fact that cryptocurrencies continue on the same path without changing anything pushes cryptos towards a bear market. After each crisis, speculation resumes its course until the end of the next cycle. The world of NFT has, for the moment, no intention of changing its habits. Non-fungible tokens could therefore effectively see their bubble burst in the future, again.
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Are NFTs really collapsing? Enthusiasts continue to trust the market – BeinCrypto UK
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