Whenever NFT is mentioned, a multi-million-dollar price tag never fails to accompany it. And with a series of successful NFT sales for the past few months, it’s no wonder why people are drawn by this digital asset.
Recently, Beeple successfully sold his NFT art for $69 million, while Twitter CEO Jack Dorsey sold an NFT version of his first tweet for $2.9 million. And these pricey sales are just one of the many multi-million dollar NFT deals that happened in the past few months.
But Gauthier Zuppinger, CEO of Nonfungible, a website that tracks market trends, warned everyone in an interview with CNBC: “The thing is that each time you’ll notice such a quick increase on any trend, you’ll see a relative decrease.”
According to Nunfungible.com, the total sales of NFTs in the first quarter of the year was a massive $2 billion. But in its latest data, it was clear that NFT sales have plunged significantly. Last May 9, the total sales has shrunk to $176 million and on June 15, it was only $8.7 million.
On top of this downward trend, there are also indications that the value of NFTs is following the same path. CryptoPunks, for example, has a weekly average value of $99,720 but was reduced to only $50,840 since June. SuperRare, from $31,778 is now only at $5,342 valuation.
Not only that, even bitcoin, with a $65,000 record in April, has now shrunk to $39,000 as of Tuesday.
It is yet to be seen if this downward trend will continue or all of these blockchain-based products will make a surprising rebound in the coming weeks.
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