The Future of the NFT Market Is Bright & Clear – Expert Analysis
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Introduction
Despite the recent market crash, the year 2021 has been revolutionary for the cryptocurrency market. Among various events such as increased Bitcoin (BTC) industrial adoption, altcoin price surge (crossing 1 trillion in market cap) and relishing the actual potential of Ethereum (ETH), the rise in popularity of the Non-Fungible Token (NFT) market is a notable one. In this article, let’s discuss the price aspects of a few notable NFTs and see some expert analysis on this topic.
Crypto Market Update
The recent news from China reinforcing its regulations on the working of Crypto exchanges and enterprises has strengthened the prevailing bearish trend in Bitcoin and top altcoins. Bitcoin faced a major blow after Elon Musk (Founder & CEO, Tesla Inc.) tweeted about discontinuing BTC payments citing environmental concerns. And since altcoins are strongly correlated to Bitcoin and its price movements, the bearish trend got translated to the entire crypto market. At the time of writing, the Crypto market total market capitalization is around $1.48 trillion, a 44% decrease from what it was in mid-April 2021.
Impact on the NFT Market
As we know by now, NFTs are nothing but a type of cryptos whose value is pegged to a real-life asset such as artwork, music video, photographs, etc. Therefore, just like any other altcoins, the prices of NFTs will get impacted when the crypto market crashes. Experts say that there’s not much data to analyze the exact correlation between Bitcoin and top NFTs in the market. An analyst from one of the most popular crypto exchanges mentioned that the overall crypto bull run is still intact. He particularly stated that the interest in NFTs is growing even during these trying times.
According to him, the fundamental reason NFTs have become popular is their ability to present exclusive right and access to precious art. This interest can’t be taken away by the crypto market crash because that is the price aspect contrary to the likability and interests. Also, he said that NFTs are still in their nascent stage as many artists and creators are in the process of stepping into this market. To keep it simple, we will see a decline in top NFT prices, but as the market flourishes again, these NFTs are poised to see astronomical growth.
As we can see in the above picture, the top five NFTs in market capitalization got impacted by the current crypto market crash. The price of the most popular NFT token Theta (THETA), has slumped by over 15% in the last 24-hours and close to 39% since the past week. Chiliz (CHZ) has also faced a similar downfall, with daily and weekly losses crossing 19% and 45%, respectively. Decentraland (MANA), DigiByte (DGB) and Enjin Coin (ENJ) also faced around 40% weekly losses.
The only NFTs unaffected are the Unicly Mystic Axies Collection (UAXIE) and Unifty (NIF). Both these tokens have registered a double-digit growth since the market crash. Please note that the market capitalization of these tokens is negligible when compared to the popular NFTs.
Non-Fungible Token Projections
As per industrial reports, the NFT market valuation is forecasted to be twice of what it is now in the next three months. NFT experts at Invezz (a popular educational and investing forum) presented an optimistic forecast on the NFT market. They say that the demand for NFTs is poised to grow further as the interest in digital collectables is sky-rocketing among the public.
According to the latest reports presented by Invezz, the total trading volume of NFTs is forecasted to go beyond $126 million by the end of July and $180 million by the end of October this year. The total trading volume of NFTs got increased by close to 700% in the first quarter of 2021.
This surge was majorly driven by growing interest in digital assets among the general public. The craze of NFTs is now spreading across global art showrooms, professional athletes and celebrities of any kind. Concerning the current market crash, Invezz mentioned that there wouldn’t be any impact on the ongoing NFT demand in the short term. However, analysts seem to have different opinions on when the crypto market recovers and how exactly NFTs would get impacted if the crypto bloodbath continues.
We hope you find this article informative. Thinking to take advantage of the price dip in top NFTs? You can buy and hold top NFTs, on our list of crypto exchanges. All the best.
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