YEREVAN (CoinChapter.com) — As crypto investors lick their wounds from the recent market crash, nonfungible token (NFT) holders remain undeterred. As a result, expensive NFTs continue to fetch big bucks, even as reports heralding the industry’s demise make headlines.
That is not to say the market crash has not impacted nonfungible tokens. For example, as CoinChapter earlier, several blue-chip NFT projects saw their floor prices and sales volumes hit.
However, recent events prove the community is ready to braze the storm. After all, not everyone is in to flip NFTs for large profits. Those that understand the concept are holding the fort.
The 2022 New York NFT conference, which took place between June 20-23, saw over 15,000 participants. In comparison, last year’s event, which made headlines, had only 5000 attendees.
In addition, the fourth edition of the event last week saw the participation of more than 1,500 speakers across multiple venues, according to a report by Forbes. This despite each ticket costing anything between $600 to $2,000.
Standing above concerns of falling or rising prices is a dedicated NFT community. Unsurprisingly, the community traded about $8 billion of digital collectibles in the first quarter (Q1) of 2022 alone.
Despite the damning reports, the average price of nonfungible tokens increased by 80%. In Q4 of 2021, the average NFT price was $587. By Q1 of 2022, it rose to $1,057, according to a report by the NFT analytics platform NonFungible.
A quick review of major collections on OpenSea shows that expensive collectibles still find takers. For example, in the past two days alone, over 10 Bored Ape Yacht Club (BAYC) NFTs went for over 100 ETH or $120,000.
A week back, a collector paid over 155 ETH (around $167,000) for Ape #7110, according to data on the largest NFT marketplace. If one thinks it comes as an isolated event, another ape fetched as high as 166 ETH or over $190,000 over the weekend.
Bored Ape Yacht Club (BAYC) sales also rallied above 40% to bring the floor price back above the 90 ETH mark.
Similar enthusiasm can also be seen around other major projects.
So why is NFT so expensive despite the market crash?
An important selling point of popular nonfungible tokens is their utility value, which attracts collectors despite the market crash. Most NFT holders are so convinced that they are a part of something big that they cling on to their collections come what may.
Doodles has similar plans, with the team announcing they will release an album with Columbia Records. Moreover, the project partnered with 13-time Grammy Award-winning musician Pharell Williams.
With popular collections getting into merchandising, gaming, and production, the future of NFTs seems bright.
Moreover, who can argue against being a part of a cool community?
NFT collectors have built an entire ecosystem around themselves, some of which have celebrity members. Holding an NFT opens doors for collectors, bringing them among the crème de la crème of showbusiness.
Price drops may scare those that want to sell their NFTs, but for those who want the prestige, NFTs are still attractive.
And one should not forget that nonfungible tokens are exactly that, nonfungible. This feature adds scarcity value to an NFT, thus ensuring that there will also be demand for it, especially if it comes from a blue-chip collection.
The growing popularity of the Metaverse and Web 3 technology will also ensure that NFTs have a bright future. According to a report by NFT gaming platform Balthazar, the NFT industry will record $48.43 billion in total sales in 2022.
However, besides collectors, NFT companies and Web3 projects attract massive capital from venture capitalists. This indicates big business tycoons are bullish on the industry’s future, thus installing confidence among investors.
“NFTs have been one of the most dynamic and prominent parts of Web3 over the last two years. The potential of this technology is far greater as it can be used to not only give the holder ownership over the digital data, or media associated with the token, but also real-world assets,”
Ethan McMahon, Economist at Chainalysis said.
Hundreds of people have made a fortune trading in NFTs. Some have become overnight media celebrities, amassing a large following on social media.
Yes, we are in a bear market, but this will end soon.
When it does, imagine where the NFT industry will go.
This expectation makes people buy expensive NFTs even during a crypto market crash. But, as Steve Mitobe of WestCoast NFT asserted in a CoinChapter exclusive interview, “we are only scratching the surface of what the NFT market will become.”
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he currently works as a reporter at CoinChapter.
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