Previous year the NFT space has seen significant growth where is generated overall market volume of about $22 bn but dropped later
Experts and intenculas on crypto space think that the users of non fungible tokens and such digital assets have started taking mature decisions regarding the assets. But why’s that and how experts are drawing this conclusion?
Take this incident for instance, the NFT of the first tweet ever, which was Twitter co-founder Jack Dorsey and sold for about $2.9 million by himself in March 2021. On 13th April recently, there was an audition that took place for the sale of the same NFT which gathered only $277 as its highest bid. The drop is so massive compared to its original price which is clearly seen here.
General notion of people would be like NFTs are not worthy, they are just over hype assets and they started feeling skeptical of this. But experts deduce conclusions from here and see it as a sign of growth in learning of NFT buyers to value the digital assets correctly rather than going simple after the internet hype like earlier.
Founder and Chief Executive of a crypto analysis firm, CREBACO, Sidharth Sogani said that most creators of NFT fall for the popularity and hype without even understanding how these digital assets would create value. He added further that digital artists are too focused on the price.
Sogani said that there are about more than 60,000 non fungible token projects, there have been a lot of NFT offerings and a huge amount of investment made by people but they have managed to sell about less than 10% to 15% of these generic NFTs. The owners just flip it to increase the prices.
Among the NFT experts, other than the founder and CEO of ‘Credit Rating for Exchange Blockchain and Coin Offerings or CREBACO also spotted such trends. Other than Sogani, Toshendra Sharma who’s founder and chief executive officer of the firm that offers software service for business to set their own NFT marketplaces, NFTically said that now the real value is reflected and showing in the market.
As per the Chanialysis, a blockchain analysis firm, about 110 NFT traders have collectively made nearly $8.9 mn in profits in 2022. Such activities will be difficult for markets as they learn to recognize its true value. As per Chainlaysis, Wash trading is a transaction where sellers present on both trade sides attempting to create a picture that is misleading as asset’s value and liquidity.
Source: https://www.thecoinrepublic.com/2022/04/20/why-experts-think-that-the-nft-market-is-learning-to-spot-their-value/