As the NFT market exploded in 2021, the early demand for the digital collectible was fueled by creators seeking something new. But as the NFT market has grown, it has evolved into a real cultural and economic phenomenon. However, the frenzy for NFTs is waning a bit, as the price of the earliest NFTs has dropped by nearly 90 percent.
In 2021, nfts were being sold at jaw-dropping prices. In February, a video clip of LeBron James's dunk on the court was sold for more than $208,000. The buyer paid for the clip in FLOW tokens. In March, Twitter CEO Jack Dorsey sold his first tweet as an NFT for the equivalent of 1,630.6 Ether, the digital currency used on the Ethereum blockchain-based platform. That is about $2.9 million.
In May, the NFT frenzy cooled off slightly. While Bitcoin continued to set new price highs, the NFT market slowed down. While the cryptocurrency community has taken note of the recent slowdown, the market for NFTs is still in the early stages of a recovery. Even though the NFT is not yet out of the blockchain, it is leading the way for other digital currencies.
However, the NFT frenzy has begun to cool off. As the hype for NFTs rises, the founder of the legendary American rap group Public Enemy also decided to sell his first tweet as an NFT. The rapper then reportedly offered $2.5 million to Sina Estavi. The NFT craze has also swept into the mainstream art world. As a result, the price of NFTs is likely to skyrocket by 2022.
While the NFT frenzy has cooled down, some investors are still bullish. In Q3, the sales of NFTs increased 800% from Q2 and hit $10.7 billion in the first three months of the year. Some of the biggest examples of this craze are the Beeple's $69 million work of art, the StarSnails by a 15-year-old Ukrainian, and the Beeple's $54 million piece of art. This shows that the creators and fans are all in on the NFT frenzy.
The NFT frenzy seems to be cooling down by 2022. But some experts believe the NFT frenzy will continue to grow. As the NFT market continues to grow, it will reach $10.7 billion in Q3 and $5 billion in the fourth quarter of this year. While this may seem like a modest amount, it is still worth noting that the NFT market is still growing, and the industry will continue to flourish in the coming years.
While the NFT frenzy seems to be cooling down, the art world's interest is booming. The art market is the next to follow suit. A recent Forbes article reported that a third of NFT sales were off-chain. This means that some of the biggest NFT sales in the past year occurred off-chain. Moreover, the NFT frenzy is still growing, but it is not as hot as it was last year.
The NFT frenzy has been a cultural phenomenon. The hype surrounding non-fungible tokens is still largely untapped, and the market may soon fall. There are currently thousands of different NFTs for sale, ranging from famous celebrity portraits to a variety of sports items. Many of these tokens represent a variety of items and are worth hundreds of thousands of dollars.
Despite the slowdown in the crypto space, the NFT space is still showing signs of resilience. During the recent crypto market crash, NFTs lost half of their value, but they are up six percent year-to-date. The current price of NFTs has been pegged to the price of Bitcoin and Ethereum. This is a sign of the positive sentiment in the NFT space.
