NFT – The Decline and Concerns of the “Regular JPEG” Market
The Decline and Concerns of the "Regular JPEG" Market with NFTs
<p>Compiled by: Shenjie, Shenlian DCNews</p><p>The NFT market has experienced a severe downturn, with prices of well-known projects like Azuki NFT and Bored Ape Yacht Club (BAYC) dropping significantly. The minimum value for Azuki NFT has dropped to $21,500 per NFT, and the lowest price for the main Azuki series has fallen from 17 ETH ($33,300) to 6 ETH ($11,800). Similarly, BAYC suffered a loss of 11%, with its value dropping below 30 ETH. These price drops have raised concerns among investors and enthusiasts, indicating a broader trend in the NFT market.</p><ul></ul><p>The decline in NFT prices can be partly attributed to a community backlash following the drop of the Crab Rave element. The negative sentiment around that project seems to have spilled over to other projects, including BAYC. The interconnectivity of the NFT market has led to price drops across various series.</p><p>Moreover, data from Dune Analytics shows that daily NFT trading has been on a downward trend for the past three months. Global daily NFT trading volume has dropped from about $60 million in March to an average of $20 million per day in June. Similarly, the number of NFT trades has fallen from about 44,000 in March to about 25,000 in June. These statistics indicate a significant contraction in NFT market activity.</p><p>Given these losses and price drops, it is understandable why some may question the long-term prospects of the NFT market as an investment opportunity. Dramatic drops in value, such as Justin Bieber’s regret over buying Bored Ape tokens, which he bought for $1.3 million and are now worth $59,090, with a net loss of $1.24 million, have heightened people’s skepticism.</p><p>However, it is important to approach this topic with a balanced perspective. The recent downturn in the NFT market does not necessarily mean that the entire market is about to end. Market fluctuations and adjustments are common in any investment environment, and the NFT market is no exception.</p><p><strong>Despite its core being ordinary JPEGs, NFTs represent unique digital assets with provable ownership and scarcity. The underlying technology has potential use cases beyond art, such as gaming, virtual real estate, and intellectual property management. While the current market downturn has raised concerns, <strong>it is important to consider the broader context and potential long-term value of NFTs.</strong></p>
Ultimately, the decision to invest in NFTs should be based on careful research, an understanding of market dynamics, and individual risk tolerance. As with any investment, diversification of projects and a comprehensive evaluation is essential. As the NFT market matures, it may undergo further changes and adaptations, and its future development remains to be seen.