Are NFTs over? Because last year, everyone was buying into the hype and profiting from it, but as of this year, the hype has noticeably died down, with the average price of an NFT falling from US $4,000 in February to just over $1,200 in April.
Now let’s take a closer look at NFTs and how they have fared the past few years.
What are NFTs?
Even with NFTs making a buzz on social media and the internet generally, we have heard or seen people ask what NFTs are in simpler terms.
According to GoTech, they actually put it in simpler terms, which I personally do like. NFT is basically a certificate of ownership for a digital asset. In layman’s terms, it’s a way to buy someone’s digital files and prove that you have ownership of them.
We could go on to talk about how unique NFTs are and how interchangeable they are and what not, but that is not what we are all about. Are NFTs over? This is still a question to many as we all saw how they made the waves in 2020 and 2021, but somehow the hype dwindled down as most assets plummeted. Indeed, NFTs were proving to be poor investments, with Twitter accounts such as Crypto Bros Taking Ls (@CoinersTakingLs) mocking NFT holders.
Talking about taking Ls, we saw Sina Estavi getting offers of $6,200 for an NFT he got for $2.9m That’s about 0.2% of what he paid. It must really hurt to be honest. He even went on to make a comment that he doesn’t think he will ever sell.
Aside from the current market downturn, the NFT world has seen its fair share of tragedies, including a phishing attack on OpenSea that cost $3 million in damages.
Should we still count on NFTs?
But we won’t go on to say they are over because transactions are still being made. The only difference is that they aren’t as expensive as they used to be. That’s literally all that matters. The NFT world was in a bubble the past few years, and it’s safe to say that this is just a correction phase in the market. And with the shift to Web 3, where they play a major role, I think we will still get to see more of its buzz and hype, so I won’t say that NFTs are over. They are indeed not dead.