NFT Collections: A Steep Decline in Value
As we pass the midpoint of 2023, it’s clear that popular nonfungible tokens (NFTs) from 2022 have taken a significant hit in value. Notable projects such as Doodles, Invisible Friends, Moonbirds, and Goblintown have experienced a staggering loss of up to 95% in their Ether (ETH) value. This trend reflects the recent depreciation of metaverse properties, which were considered prime virtual investment lands in 2022.
The Plunge of Blue-Chip NFTs
Data from NFTGo reveals that the value of these blue-chip NFT collections alone has fallen by over 40% on average. The Blue Chip Index, a key indicator of these NFTs’ performance, plunged from its 2022 high of 12,394 ETH to a low of 7,446 ETH.
Unfazed Investors Amid Decline
Despite the considerable drop in value, NFT investors remain surprisingly unfazed. Although many predict further depreciation, a select group sees this as the ideal investment opportunity, expecting a significant rebound.
Interestingly, the number of blue-chip NFT holders increased by over 90% in the past year, despite a 30% decrease in buyers and a 32% increase in sellers.
The Appeal of the NFT Ecosystem
Even with these financial setbacks, the NFT ecosystem continues to attract new investors. In a surprise move, crypto skeptic Peter Schiff launched his own NFT project, “Golden Triumph,” on the Bitcoin blockchain via Ordinals. This collection, depicting a human hand holding a gold bar, will be sold via a two-part auction starting June 2 and concluding on June 9.
The dramatic value loss of NFTs in 2023 is a stark reminder of the volatility and risks inherent in cryptocurrency investments. However, the continued growth in investor interest suggests the NFT market isn’t disappearing anytime soon.