The NFT market, once an exciting new digital frontier, has taken a drastic turn as the exuberance of 2021 has since cooled dramatically. In this op-ed, we explore the price plunge of top NFT collections. It provides data-driven insight into the reasons that led to their decline. We'll offer a balanced perspective on the current state and potential future of the NFT market, including expert opinions on whether a rebound is possible. DeliciousNFT.com is out here to cut through the noise and bring you the true feel of the decentralized bubble.
Understanding NFTs
NFTs quickly changed the way we think about digital ownership. In order to succeed in today’s market, you need to know the ins and outs of these complex assets.
Overview of NFTs
NFT stands for Non-Fungible Token. The word “non-fungible” indicates that each token is distinct from the others and impossible to trade like-for-like. Fungible things like cryptocurrencies, like Bitcoin, are completely fungible. Each unit is completely fungible and can be traded in and out with ease. Think of it like this: one dollar is the same as any other dollar, but a specific piece of art, like the Mona Lisa, is unique and irreplaceable.
NFTs can represent a wide range of digital items, including:
- Digital art
- Collectibles
- Music
- Virtual real estate
- In-game items
- Tickets to events
NFT use cases are still evolving day by day. They function as digital art, collectibles, and unique digital identifiers of ownership of a specific item or experience.
Popular NFT Collections
Many of the communities behind these NFT collections, which skyrocketed in popularity during the 2021 boom, became well-known names in the crypto space. These collections typically had distinct artwork, huge community support, and special benefits for holders. Some of the most popular collections include:
- Bored Ape Yacht Club (BAYC): A collection of 10,000 unique ape avatars, known for its celebrity endorsements and exclusive community events.
- CryptoPunks: One of the earliest NFT projects, featuring 10,000 pixelated characters that have become iconic symbols of the NFT movement.
- Azuki: An anime-inspired collection of 10,000 avatars, known for its distinctive art style and community focus.
- Doodles: A collection of colorful and whimsical characters, known for its inclusive community and focus on creativity.
- Pudgy Penguins: A collection of adorable penguin characters that experienced a resurgence in popularity after a community-led takeover.
- Taproot Wizards: A collection of Bitcoin-based NFTs that gained attention for their unique art style and connection to the Bitcoin community.
Groupings like these, along with others, fueled rising NFT speculation, eventually bringing art and collectibles into the limelight, pulling in the mainstream to this burgeoning ecosystem. The later market correction has taken a hard toll on their worth.
Price Decline of Notable NFT Collections
After peaking in early 2021, the NFT market has since come back down to earth in a big way. It’s undeniable that the price of most popular collections has tanked hard.
Cryptopunks Price Trends
CryptoPunks, perhaps the most legendary of all NFT projects, have a special place in art history as the trailblazing digital collectibles. At their height, some CryptoPunks sold for upwards of 5 million dollars, cementing them as blue-chip NFTs. The floor price of CryptoPunks today is down in line with the rest of the market’s downturn. The floor price has fallen by about 97.51% in ETH from its all-time high sale of 400 ETH. This drastic drop illustrates how volatile the NFT market truly is. It illustrates the way that macroeconomic forces can upend even the best-resourced and most storied collections. CryptoPunks, once the darlings of the boom, collecting the highest of prices compared to most NFTs, are worth less than half their peak valuations.
Bored Ape Yacht Club Price Trends
The Bored Ape Yacht Club (BAYC) might have been the highest profile and most successful NFT collection of the 2021 boom. BAYC has recently gained notoriety because of its celebrity ownership and exclusive community benefits. Individual apes now sell for hundreds of thousands, and even millions, of dollars—hitting all-time highs. As with other top collections, BAYC has undergone a dramatic price correction. The floor price of BAYC has decreased to 14.1 ETH, approximately $25,451. 24-hour sales volume over the past day is an astounding 164.82 ETH, roughly $296,500. This is down markedly from its all-time high, a sign of the NFT market’s shifting sentiment and growing supply. BAYC is 18 months since launch as one of the valuable NFT collections by floor value. It too is down tremendously from its peak valuation.
Taproot Wizard Price Trends
While many NFT collections have suffered significant losses, Taproot Wizards has defied the trend, showcasing the unpredictable nature of the NFT market. Meanwhile, the minimum floor price of Taproot Wizards NFTs has soared about 68.7% since tapping its peak bottom price. This growth can be attributed to three main drivers. The project’s innovative, Bitcoin-centric approach, striking art and aesthetic, and passionate community of supporters are all factors in its phenomenal success. Taproot Wizards’ success is a testament that growth and innovation are still very much alive within the NFT ecosystem. This is true even in a down market. It further underscores the promise of community, utility, and artistic merit as drivers of NFT value.
Conclusion
The NFT market has since seen a major correction from its heights in 2021. Although part of the graying of the Baby Boomers’ collections retained or appreciated in value, a majority plummeted in monetary worth.
Summary of Price Changes
Here's a summary of the price changes for some of the notable NFT collections discussed:
- Azuki: Price has dropped 99.38% from its peak.
- Doodles: Price has decreased about 99.52% from its peak.
- Pudgy Penguins: Price has dropped approximately 91.44% from its peak.
- CryptoPunks: Floor price has dropped by approximately 97.51% in ETH from its peak sale of 400 ETH.
- BAYC: Floor price is currently 14.1 ETH (around $25,451), a decrease from its peak.
- Taproot Wizards: Floor price has increased by approximately 68.7% from their minimum peak price.
All of these numbers paint a picture of the extreme fluctuations in the NFT market. Those who signed on during the project’s boom time are now in a perilous place.
Future Outlook for NFTs
The ultimate fate of NFTs is still up in the air, but there are a few different ways things could go. Another option is the status quo, a continuation of current conditions marked by ongoing price drops as the market fails to ever find its footing again. A second option is for prices to stabilize, with the balance of supply and demand settling at a new, lower equilibrium. A third option would be a sharp rebound. With new use cases for NFTs coming to the fore, attracting new investors into the space, prices have the potential to increase even further.
Marcin Kowalczyk is a blockchain regulatory analyst and writer. He feels that for NFTs to flourish long-term, it’s important they develop beyond just speculative assets and find real-life use cases in multiple industries. To him, it’s about emphasizing utility and building community. Beyond possible prosecution, he makes it clear that meeting regulatory standards is essential for the long-term health of the NFT marketplace. Kowalczyk’s early love of chess has influenced his strategic methods behind crypto policy analysis. He agrees that such a comeback is possible, but cautions it requires strategic vision and stewardship.
So, will the NFT market recover or keep crashing? One thing is clear: the market has matured, and investors are now more discerning than ever before. Projects that offer genuine value, strong community support, and innovative use cases are more likely to succeed in the long run. DeliciousNFT.com is going to continue providing clear, unique ongoing global regulatory insight. We provide no-BS dApp reviews to ensure you make the right decisions in this NFT now booming metaverse.
