NFTs are tokens that people have learnt to use as a store of value, but recently every crypto related assets are also feeling the massive bear heat as they are tanking, holders are joining cryptocurrency coin holders to knowi how it feels like to have lesser value of their asset. Most of these NFTs are Ethereum based NFTs, like the Bored Ape NFT, Cryptopunk NFT, and the rest. 2021, was the year we saw a big spike in the Ethereum based NFTs found on Opensea, where we saw a huge NFT trading volume, and the sales were high. Unfortunately June is the month where there is a 70% drop in the value of the trading volume of NFTs on opensea.
The total crypto market has been in the decline for a long time now, but for how long will it keep going? The NFT trading volume has massively decreased from a $2.7 Billion to $670 Million. This is obviously the first NFT Bear Market, at least this is the first most people are experiencing, this is going to be a great lesson for most people who invested in NFTs. I heard we have lots of people who invested in NFTs but not in crypto, I wonder how that works, but from this point, they are also in this bear run with us. The value of NFTs have have really surge both in ETH and in USD. For some people, that is an opportunity to buy more, lots of holders are selling based on sentiments.
I understand why other NFT collection holders will sell their NFTs based on the current market bear sentiment, but bored ape NFTs are different and they have proven to be different with their constant updates and making holders benefit from holding these NFTs. The value has dropped based on current crypto dip but sales seems to remain steady, just the floor price going lower. I wonder what the psychology behind constantly reducing the floor price to sell faster without considering losing. Lots of people invested a lot of ETH into Bored Ape NFTs, I can only make my floor price lower if I got the NFT for free, but as long as I didn’t get them for free, I am willing to wait.
Besides most pioneer Bored Ape NFT members must have gotten their capital a long time ago, if you calculate the airdrop they have received. New holders will be selling at a huge loss, but old holders won’t be selling at a huge loss. So I can assume that old sellers are the ones selling, but I wonder why they will sell when they have tasted the airdrop perks of owning a bored ape.
Being the first NFT Bear Market, lots of people are expected to learn from this to help prepare for the next Bull run and how to utilize it and make it suit them. There are platforms were owning an NFT enables you to earn tokens, you can stake your NFTs and earn. It’s not widely used as enough use case and utilities have not been built surrounding that earning sector. But we might likely see that in the next Bull run, or a new utility might get built to bring more use case to NFTs.
