It’s hard to have missed the NFT phenomenon lately. Yet present for years, the sale in March of a 10-second video for $ 6.6 million has shed light on this system which can pay very big . The public opinion was then carried away, the experts called for the new digital El Dorado , in short, the NFTs quickly became the new investment in vogue.
But, like any speculative element, investing money in NFTs is not without risk . “It’s definitely an economic bubble. It is difficult to predict when we will reach the top ” , said Nate Hart investor at the time. Finally, it didn’t take long to reach this peak. This took place on May 3. Since then, the market has plummeted at great speed .
THAT’S IT, THE NFT ECONOMIC BUBBLE HAS BURST
The inherent instability of the system made its downfall relatively predictable, as some have not missed. But for others, it’s the cold shower . The figures are not mistaken: the golden age is well and truly over. Let’s do a check in. On May 3, 2021, the NFT market is at its peak. No less than $ 100 million is spent on certificates on this day alone. In the last week, “only” $ 19.4 million was recorded . The entire market is suffering a sharp fall of 90% of its activity.
And it does not stop there. While non-fungible artwork generated several million dollars in a matter of days, it only grossed 3 million this past week . To make matters worse, investors let go one by one. Since the peak in May, the number of virtual wallets dedicated to NFTs has increased from 12,000 to 3,900 . But if the market goes through a serious crisis, this does not mean the end of the system.
Indeed, many companies have built their business around NFTs and have been present for years. This is particularly the case of NBA Top Shots , which was one of the first to take an interest in this new form of investment, and which consequently suffered its multiple crises. In other words, the NFT is not dead . But the fashion seems to have passed.