-Ninety two%? Past fashion or is there something else?

When a new fashion appears, there are always those who get excited and throw themselves into it as if they have always been waiting for it. And there are those who sit, as they say, on the edge of the river waiting for the corpse to pass in the same way. In short: there are those who hope that it will last forever, and who are sure that, as fashion, it will be ready to go in no time.

In recent months there has been a lot of talk about the NFT market, non-fungible tokens. Any simplified and unique digital parts you can own. And that they exist thanks to blockhain, a kind of digital record that keeps track of any transfer of ownership associated with each NFT, so that the author (who can at any time revoke the NFTs he created) knows who the owner is.

we will: The NFT market suffered a sharp crash. Let’s analyze what happened, and let’s try to understand whether those who sat at the edge of the river waiting for the body of an NFT are right, or who thinks that the non-innate symbol is a phenomenon destined to take hold.

NFT market crash

The Wall Street Journal reported that last week, the pace of sales of NFTs collapsed, reaching -92% compared to September 2021.– 19 thousand pieces sold, compared to 225 thousand previous ones. This is data from the NonFungible website, which leads to an inescapable question: Has the NFT market really collapsed?

We remember how indivisible symbols also gave birth to a new form of grouping. Last year at Christie’s auction house, the first 5,000 working days in NFT by Beeple, a 39-year-old graphic designer, sold for $69,346,250. This is the most expensive digital artwork ever.

The other side of the coin

But, There is a fact that can make the sharp slowdown in the NFT market to be read from another perspective. Lately, sales have focused on low-value tokens, which are liquidated at a discount to invest in the most popular assets. According to Forbes, in short, we will face a market that is being integrated and balanced, as happened in the recent past with cryptocurrencies.

Thus, the negative numbers certainly only indicate that – once the initial drunkenness is over – there are now more conscious behaviors in the NFT market.

So, are the Wall Street Journal or Forbes right? Is it time to invest in non-fungible tokens or escape?

The bubble burst or the market in consolidation?

In fact, the maturity of the market means the disappearance of the so-called dead wood, and instead the emergence of more solid, credible and dynamic realities. Likewise, reckless and fancy operations give way to more canonical transactions.

Of course, the -92% drop is impressive: we will have to wait for the next few months to understand whether a bubble burst or the market became more stable.

Data for the first quarter of 2022

In fact, the NonFungible report also looks at the longer time frames.

For example, referring to the first quarter of 2022, research shows how sales of non-fungible tokens have fallen by 50%. compared to the previous quarter. Overall, sales lost only 3% thanks to some record purchases.

However, this is a clear opposite trend compared to 2021, which sanctioned the triumph of non-fungible tokens, a niche phenomenon until 2020. Just consider that NFT turnover in 2021 was $17 billion, with a mind-boggling increase compared to the previous year. : +21000%.

The NFT symbol for a market pullback is Jack Dorsey’s first tweet, founder and former CEO of Twitter. Sold last year for $2.9 million, it’s been put up for sale again. But so far no one wanted to bid more than $14,000.

What is the future of NFTs?

NonFungible points to inflation and war in Ukraine among the reasons for the sharp slowdown in the NFT market.

But We may have simply entered a kind of second stage of the non-fungible token market. A stage in which it is increasingly difficult to see the dizzying guesses, but it may open a different way of understanding the non-fungible tokens. Including a perspective with social or even political implications.

A very recent example comes from Ukraine. Where, as mentioned in another article, the Ministry of Digital Transformation inaugurated the Meta History of War Museum, a virtual museum of 54 artworks in the NFT that chronicles the Russian-Ukrainian conflict in chronological order. Anyone will be able to buy a business, and the entire proceeds will go to the Ukrainian army and the occupied population.

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