Cryptoverse: NFT bubble gets that shrinking feeling

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April 5 (Reuters)-NFT bubble hasn’t burst, but a leak may have occurred.

One non-fungible token sold at Christie’s auction house in $ 69.3 million cryptocurrency paid by buyers to be recorded on the blockchain as the owner of a digital file that anyone can view online for free Only a year later, this strange and wild market is showing signs of slowing down.

Sales of OpenSea, the largest NFT marketplace, reached nearly $ 5 billion in January, a significant increase from $ 8 million in the previous year, but fell to about $ 2.5 billion last month.

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According to market tracker CryptoSlam, about 635,000 people bought NFTs for an average of $ 427 last month, down from about $ 948,000 in January to $ 659.

Nevertheless, companies continue to load into the fashionable “Metaverse.” There, you can buy digital assets such as virtual land and clothing for avatars as NFTs in cryptocurrency. JPMorgan (JPM.N) and HSBC (HSBA.L) are one of the companies that opened virtual venues in the NFT-based world this year, but YouTube and Instagram (GOOGL.O) also have NFT plans.read more

Pablo Rodriguez-Fraile, a Miami-based digital art collector, said: “I think we have achieved something that is not sustainable.”

But he added that sales have recovered again in the last few weeks.

NFT sales at OpenSea

Modesta Masoit, director of finance and analytics at NFT research firm Dapp Radar, said the market wasn’t declining overall, but was consolidating after rapid growth, and Russia moved to Ukraine in late February. He added that investor attention after the invasion may have pushed down sales.

“Everyone expected a period of integration,” she added. “It doesn’t disappear, it’s just integrated.”

According to DappRadar, total NFT sales in 2022 so far total about $ 11.8 billion. However, it excludes $ 19.3 billion worth of revenue from platforms suspected of being dominated by irregular transactions. On this platform, a small number of accounts exchange items at soaring prices.read more

Daily NFT volume

Bull that endures apes

NFTs can be exotic and dangerous beasts.

In a highly volatile market where the value of an asset depends on its social status, prices can fall dramatically after the first surge.

In contrast to the traditional art world, the NFT market can seesaw a cycle of bulls and bears in just one week, said Nima Sagharchi, head of digital assets at auction house Bonhams.

According to CryptoSlam, NFTs that represent some of the computer-generated abstract images from a collection called Art Blocks will sell for an average of about $ 15,000 at the peak of September 2021, but last month for just under $ 4,200. It was acquired.

Meanwhile, the Bored Ape Yacht Club NFT (a set of 10,000 variations of cartoon primates) sells for about $ 300,000 on average.

Boring monkey price

Buying a boring monkey, as done by celebrities such as Madonna and Paris Hilton, can be seen as similar to participating in a cross between a membership club and an investment scheme. Buyers often promote their membership by setting up NFTs as their social media profile pictures.

A cryptocurrency called ApeCoin was launched last month and was initially given to Bored ApeNFT owners and project founders. According to Coinbase data, the market capitalization is already $ 3.4 billion.

RaoulPal, a former Goldman Sachs executive, wrote in a blog post that expectations for this token encouraged Bored ApeNFT to spend about $ 400,000 worth of cryptocurrency Ethereum.

“Social tokens are big,” he writes.

NFT index
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Report by Elizabeth Howcroft in London. Edited by Pravin Char

Our Criteria: Thomson Reuters Trust Principles.

The expressed opinion is that of the author. These do not reflect the views of Reuters News, which under the principle of trust, is committed to integrity, independence and freedom from prejudice.

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