Market Value of NFTs Crashes by Almost 70%

According to a recent report from Bloomberg, the market price of non-fungible tokens (NFTs), which rose to popularity in recent months, is now crashing. The market for NFTs is reportedly down almost 70 percent from its February peak.

Bloomberg reports that as many have predicted, the prices of non-fungible tokens or NFTs are now crashing fast. Recent data from NonFungible.com, an NFT marketplace tracker, showed that the value of NFTs has collapsed by almost 70 percent from its peak in February.

The blockchain-based digital certificates that provide individuals with exclusive ownership over a piece of digital art rose to popularity earlier this year, with some works being sold for millions of dollars worth of cryptocurrency.

The most famous person to benefit from the NFT craze is a digital artist known as Beeple who sold a collection of his artwork as an NFT for $69 million at the internationally renowned auction house Christie’s.

But since then, the market for NFTs has slowed significantly with individual NFTs now being sold for an average of $1,400 in comparison to $4,300 during the peak of their popularity in mid-February, according to NonFungible’s report.

Many still have faith in the technology, however. Blockchain expert and University of Pittsburgh academic Chris Wilmer told Bloomberg: “It’s not meaningful to characterize a concept as a financial bubble. NFTs aren’t in a bubble any more than ‘cryptocurrency’ is a bubble.”

Wilmer believes that despite the rise and fall in value, the technology remains the same. “There will be manias and irrational exuberance, but cryptocurrency is clearly here to stay with us for the long term and NFTs probably are too,” he stated.

When examined with a wider scope, NFT tokens still made huge gains this year, surging by almost ten times their value in just six months, according to NonFungible’s analysis. Whether the current prices represent a dip or a steady decline remains to be seen.

However, NonFungible concluded in its report: “The trend seems more to show a stabilization on a high plateau following a speculative peak.”