In early April, the market for NFT tokens (non-fungible tokens) went down. If in March the volume of sales rose to a record $ 200 million, now, according to the marketplace Nonfungible.com, there is much less activity in this market. The average cost of NFT decreased by 67% compared to the peak value in February – from $ 4.3 thousand to $ 1.4 thousand, writes RBC Crypto.
Other data points to the fall. On March 27, 179 thousand tokens were sold on the site. Since then, this number has been decreasing and as of April 5, it is 155.6 thousand. During the same period, the number of active sellers also decreased by 5.3% – from 20.6 thousand to 19.5 thousand. In March, the NFT market showed growth – the volume of sales of non-fungible tokens reached a record $ 200 million, which is more than it was sold for the entire 2020.
When any new project enters the market, it is accompanied by excitement and “pumping”, after which a correction occurs, explained Nikolay Shkilev, CEO of ZELWIN.com marketplace and founder of Private Business Club. According to him, usually after the correction, stabilization and smooth growth occurs.
“I think that now there will be a correction, but this industry will not burst, but really strong players and projects will remain, which will continue to bring good profits,” the expert explained.
The excitement around NFT will gradually go away and give way to the normal and stable development of the market, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. In his opinion, technology can no longer surprise the art world, but NFTs can find “new ways of self-expression.”
“NFT will not disappear completely, tokens will find their niche. I see great potential for non-fungible tokens in the financial sector, for example, as a digital analogue of bearer shares or a tokenized version of precious stones, “Nikita Soshnikov explained.
He also added that he does not consider the market for non-fungible tokens to be a bubble.
NFT technology promises numerous implications, including those that go beyond the cryptocurrency industry, said Sergey Khitrov, founder of Listing.Help & Blockchain Life.
“NFTs are creating new tokenized markets for off-chain assets, bringing new people into the industry through digitalizing art and collectibles, and laying the legal foundation for tokenized assets,” he added.
According to him, the growth in the number of examples of the use of NFT technology and, accordingly, its value, is not as fast as many adepts would like. Because of this, the market for non-fungible tokens may be accompanied by corrections that many may mistake for a bursting bubble, says Sergey Khitrov.