It has been a really long time since the cryptocurrency industry was first introduced and honestly, the industry has had a wonderful journey so far by being able to lure in potential investors from all across the globe and managing to make a name for itself in the global marketplace. Not just that, as mentioned, the industry has had a surge in its overall growth and popularity recently, thus helping it to reach greater heights!
Having said that, I believe a majority of you are already familiar with the basics of the industry and I am sure that you are eagerly waiting for us to start with what we have with us today but, for some of you who are new to this whole thing, it’s best if we have a brief look at the industry first
To begin with, cryptocurrencies as the name suggest are nothing but a form of online or virtual currencies that can easily be made use of for a variety of purposes including the purchase and sale of goods and services as well as for the purpose of trade and exchange over cryptocurrency exchanges available online.
In other words, crypto is a blockchain-based platform that is known to be decentralized to its very core. Being decentralized, the crypto world becomes more than capable of stepping outside the overall control and jurisdiction of central authorities and can work freely without any unnecessary government interferences as well.
Also, when the industry was first introduced there were not many currencies to choose from and honestly, not many people were looking to be a part of it either as people back then were very skeptical with respect to the return on investments they could expect as well as the safety of their money too.
That is surely not the case anymore as today, we have pools of currencies available for investors to choose from, with newer ones coming in with each passing day and tons of new investors joining in every hour.
Speaking of a lot of currencies available today in the marketplace, some of the most popular ones worth investing in includes Bitcoin, Cardano, Baby Doge, Ethereum, Dogecoin, Polkadot, and Binance Coin, PancakeSwap as well as EverGrow Coin to name just a few of course.
In addition to this, it feels rather interesting seeing such a rapid growth of the industry over the past couple of years and so, let’s look at some of the major contributing factors responsible for this huge success including portability, high-profit margins, volatility, negligible response time, convince it offers, intuitive nature as well as ease of use of course.
Being volatile, it is important for you to be aware of the fact that, it is not always possible to predict the price changes and act accordingly as the price fluctuations in the crypto marketplace are almost immediate, thus leaving no time to plan. Therefore, whenever dealing in online currencies, keep in mind that, if the industry is providing you with an opportunity to earn huge profits and make quick money, if not done right, you could also end up having significantly huge losses as well.
Not just that, as per the chatter amongst some of the leading experts in the field, it has come to our notice that, crypto is rapidly progressing towards completely revolutionizing the global payment system and from where I stand, it looks like it has already started to do so as many merchants and businesses have started accepting crypto as an official mode of payment from their customers.
Now that you have a brief backstory about the crypto world, you will be able to have a much better understanding of what we have with us today, the NFT market crash and the Top 3 NFTs that lost the most value. To know more, I suggest you read further!
Everything to know about NFTs and the recent market crash!
To put it simply, non-fungible tokens or NFTs are nothing but simply unique virtual objects that are known to be backed by blockchain technology, which as a matter of fact ensures that they cannot be replicated or counterfeited. Now, NFTs can be a video, a painting, a video game collectible item, an audio snippet, a GIF, or almost anything else you could think of.
In addition to this, though they are obviously not without fault, NFTs certainly seems to be a bastion for creativity in the virtual or online space. In other words, despite of being around for quite some time now, NFTs have only managed to rise to real prominence in 2021 are can easily be bought and sold over various exchanges available online and are stored on the blockchain itself.
However, it is worth noting that, there is a lot of excitement currently around using this particular technology for selling virtual art. As mentioned, people who are specifically interested in trading virtual currencies, as well as the ones who have a liking for artwork, often use NFTs. Apart from this, some other uses of NFTs include Digital content, Gaming items, investment and collaterals, domain names, and more.
Furthermore, know that various global celebrities have also recognized this new technology and have been keen to try it out! For instance, celebrities like Shawn Mendes, Snoop Dogg as well as Jack Dorsey have been seen taking interest in the NFTs by simply releasing unique memories as well as artwork of courses and selling them as securitized NFTs.
It is probably worth noting that, for some of you wondering as to why are non-fungible tokens becoming more and more popular day by day? Allow me a chance to explain. See, NFTs have been with us for quite some time now and were first seen back in 2015, but are surely experiencing a certain boost In popularity now, all thanks to a variety of factors.
First of which and probably the most obvious answer to which is the excitement and the overall normalization of cryptocurrencies globally along with the underlying blockchain frameworks. Even beyond technology, it is a man or a combination of fandom, the laws of scarcity as well as the economies of royalties.
Consumers all want to actually get in on the opportunity to own unique digital content as well as potentially hold them as nothing but a type of investment that could fetch them certain returns in the future of course.
Moving further, let’s now discuss the recent NFT market crash and its consequences, shall we? So, a lot of us have had this question since the crypto market crash that, is NFTs next in line, especially after the trade volumes, as well as the price for NFTs, have declined significantly on average since their peak last year.
Know that, if the NFT market crashes, which it has started to already, the consequences could be huge. Primarily concerned with the new buyers that entered the marketplace last year with the help of NFTs which insiders pitched as a rather fun way to experiment with virtual currencies.
If they do feel burned by a serious decline, it actually takes a very long time in order to bring them back into the fold. As mentioned, the NFT market seems to look vastly different now and since last year’s NFT boom was one of the biggest crypto stories, the snapback could be one of 2022’s cautionary tales.
Having said that, the answer to your question, is the NFT crash happening? As per the data released as of last week, it is shown that the overall NFT transactions have slowed and have even decreased by about 92 percent from this time last year. The rise of the popularity of NFTs does appear to be declining but again, is this the end or a new beginning for non-fungible tokens.
However, the overall idea that NFTs are over is more likely to be an overstated belief. For instance, the Moonbirds NFT project is said to have added 500 million dollars worth of trading volume, while on the other hand, the Solana blockchain saw a 91 percent month-on-month increase, thus recording about 300 million dollars in NFT trading.
More or less, I believe that NFTs are at the end of one curve and are on the verge to start another, as it moves from PFP to NFTs with use and this new boom could actually be the one that really sees the tech emerge as something interesting.
All in all, a crash is expected, of course, it may be here now or could be on its way. Honestly, this is not the first time we have wondered if NFTs are over? However, what comes next is what will define what NFTs are and how they are made use of. It’s rather interesting really, isn’t it?
Top 3 NFTs that lost the most value
1. Jack Dorsey’s First Tweet:
In December 2020, Jack Dorsey, one of the co-founders of Twitter is known to have created a non-fungible token (NFT) out of his first-ever Twitter post. For some of you wondering what it exactly was? Dorsey actually turned a rather static image of a five-word tweet into a virtual fie that was then stored on a blockchain and that is how an NFT was born! Now, this particular NFT was originally sold for about 2.9 million dollars but when the buyer again tied to sell it off last month, the could only fetch nearly $280 which is a significant decline in value.
2. Bored Ape Yacht Club:
Bored Ape Yacht Club or as commonly referred to as Bored Ape is nothing but simply a non-fungible token (NFT) collection that has been built on the popular Ethereum blockchain. The said collection is said to feature profile pictures of cartoon apes that are procedurally generated by an algorithm. Just recently, the aid collection saw its floor price among its items. The overall value went down more than 60 percent or about 237,000 dollars during the past month or about 88 ETH. Moreover, a similar virtual token of an ape with a red hat, sleeveless T-shirt, and multicolored grin, part of the same club was purchased for over 520000 dollars on April 30 but was sold at around half the price 10 days later.
3. CryptoPunk #273:
Created by the popular development studio, Larva Labs, CryptoPunks are simply a series of 10,0000 images that are tokenized as non-fungible tokens on the popular Ethereum blockchain. All in all, holding a CryptoPunks NFT means that you are the sole owner of one of a kind pixel avatar. Now, as a matter of fact, the NFT market crash has had its impact on CryptoPunks as well as the prices have felt large. What was bought for about a million dollars was just sold recently for about 139000 dollars just 6 months later.
Reading so far, I hope you must have gotten a fair insight into NFTs and the recent market crash and I believe, now you’ll be able to decide on your own whether or not it is a good idea for you to be investing in NFTs.
As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, you need to understand the fact that all cryptocurrencies have their own risks as well and you should invest only if you are willing to take those risks and bear any losses if at all necessary.
In conclusion, what are your thoughts on the NFT market crash? Do let us know in the comments area below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!