On Monday, the TerraUSD (UST) computational stablecoin broke its anchor to the dollar, sending the entire crypto market into a tailspin. Bitcoin has dropped below $30,000, ether has dropped below $2,000, and other tokens hit rock bottom. Will NFTs prices drop? Let’s find out.
Because of the falling price of ether, the value of NFT investors’ holdings has fallen even further.
NFT Prices Drop: What Is The Current Market Condition of NFT?
DeFi markets have been a roller coaster ride for investors. From the Terra Luna crash to Bitcoin’s disappointing price predictions, digital finance markets are suffering. Since NFTs are also digital assets, there are possibilities that this asset will also suffer.
A great number of investors are now getting into Non-Fungible coins. For instance, on any one day in April and May, over 30 thousand digital wallets purchased NFTs from prominent marketplaces like nonfungible.com!
This is slightly down from the 39,000 purchasers in March. But still, a huge increase over the less than 10,000 buyers on most days in 2020, when there were just 1 or 2 thousand individual investors each time.
From March 14 to 24, more than a third of transactions on OpenSea were under $100, with 53 percent of sales exceeding $200.
The majority of the time, prices do not exceed $300. Whenever you buy a costly piece of digital art, make sure you understand what you’re getting yourself into; production prices range from $70-$150.
Experts argue that NFTs aren’t quite prepared for mainstream investing and that there are certain aspects of cryptocurrency that you’ll want to be well familiar with before investing in one.
For starters, buying an NFT is a difficult procedure. To get started, you’ll need an Ethereum-compatible crypto wallet and some ether and the ability to connect your digital wallet to an NFT exchange.
Why NFTs Prices Drop?
NFT prices drop after the US Federal Reserve hiked the rate of interest, Terra’s LUNA and UST-based systems crashed, and investors realized the entire industry could be in a bearish trend. Investors are already preparing for potential earnings and methods to weather the current global recession.
However, trading volume on Terra-based NFTs reached new highs on May 11 but has since the NFTs prices dropped.
Cheaper Ether costs, but on the other side of the story, have resulted in a long-term decline in ETH NFT floor prices and lower gas fees (which power transactions on the Ethereum blockchain).
Blue-chip digital projects like Bored Ape Yacht Club (BAYC) and CryptoPunks are big names, but they also got a severe hit. Over seven days, BAYC trade on OpenSea dropped to its lowest point in the last month, down 63 percent on May 12, 20.
Since the start of May, the spectrum of sales figures has ranged between eight and 67 NFTs, but the collection’s minimum price has suffered a more steady impact.
NFTs make it possible to develop and exchange digital assets that aren’t as volatile as digital currencies. While this may appear to be a small differential, it offers a world of new alternatives for using the non-fungible tokens.
Is There A Future in NFT Investment?
An NFT can be thought of as a genuine piece of digital art or a gaming item that can generate money. Artists also use them to verify the copyright of their artwork, which can include JPEGs or GIFs, artworks, video or audio files, or any other sort of digital asset. NFTs which run on blockchains like Ethereum and Matic, have a wide range of applications.
The files are saved on a decentralized server, and you can generate a non-fungible token to establish ownership. GIFs, digital art, and static images are all available in the form of NFTs. Through NFTs, artists can upload their art and confirm ownership of the digital property.
The present transaction values between OpenSea and Atomic Market are nearly identical at just around $90 million per 30 days, relative to ABC’s monthly worth of roughly a quarter billion dollars.
When it comes to all-time investors, the numbers are nearly identical at 440 thousand and 400 thousand; accordingly, both platforms have lately seen a surge of 150 thousand new transactions in the previous month. Which provides a competitive advantage over previous market conditions.
NFTs have also paved the way for the sale of digital assets on the secondary market. This enables NFT collectors to advertise and trade their NFTs on a network, much like creators. However, you pay a fee to the original developer every time the token is traded.
NFTs, unlike other digital currencies, cannot be instantly swapped. No two NFTs are the same, even if they are from the same system, game, or collections. You’re purchasing a code that presents itself as short videos, photos, or art, among other elements.
This is not only exclusive but also lucrative in the long run. So, even if NFTs prices drop, do not worry. It’s not going to crash anytime soon.