The NFT market downturn wipes out the speculators
The Future. The NFT market may have cooled significantly in the past several months, but the freeze has “left behind” a community of artists and developers that are genuinely passionate about the technology. Sales may no longer provide the lottery-like returns of 2021, but it may establish NFTs as a mainstream source of income for any professional artist, photographer, or graphic designer.
Wheat and chaff
Per Axios, it’s survival-of-the-most-passionate in this crypto winter.
- The NFT market is not what it used to be back in the heyday of November 2021, with one ETH now worth roughly $1,300 (down from $5,000).
- Also, sales on popular NFT platform OpenSea are a fraction of what they were just several months ago.
- But, while the overall worth of NFTs has dropped significantly, the downturn has forced many of the low-quality, get-rich-quick collections to pack up and leave.
- So, that culling of the speculators has actually been a boon for the NFT art community, which gathers regularly on platforms like Discord and Twitter Spaces.
- And art can still sell… You just may need to partner with a high-profile creator and not expect the sky-high prices commanded last year.
Maybe the mid-pandemic hype has finally cooled to something normal and sustainable. According to Lynnette Blanche, co-founder of Desire Path, a digital community for NFT photographers, “There’s still a lot of activity that’s happening with smaller artists and communities that, if anything, I feel like is consistent with the amount of selling and creating that was happening at the beginning.”
This may be the era of projects built to last… especially as Ethereum has completed its “Merge” to a more sustainable and cost-efficient protocol.