The NFT madness has collapsed, it was inevitable!

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2 min read

Bought for 2.9 million dollars, an offer for 14000 USD...

Sina Estavi, CEO of Blockchain company Bridge Oracle, bought the first ever tweet of Jack Dorsey on Twitter, wrapped as an NFT for a whopping 2.9 million US Dollars in March of 2021. In April this year he offered the same NFT on an auction, where he hoped to get 48 million USD for it. The best offer he got was... 2.2 ETH, which was equivalent to 14000 USD. That is about 0.2 % of what he was hoping to get. And just 2.886 million dollars short of what he paid for it. My guess is, he waited to long to resell his purchase. As the NFT buying and reselling has halted quite abruptly since March of this year.


Average sale price dropped from 4000 USD to 1400 USD

From January to April this year the average sale price of NFTs has dropped significantly from above 5000 USD to about 1400 USD in April. The total sales of the big market places like Opensea have dropped two months in a row, even though there is still an immense influx of new NFTs on the market.
One thing we can conclude for sure, the short term flipping of NFTs has become very risky and a quite sure losing transaction. A part form a few NFTs out of the billions that are on the market, most of them are being sold for the same price or lower than their previous sale. A clear sign of a cooling market. Which is in my opinion quite healthy.


NFT A is not NFT B

And there is also a difference between NFTs that have utility (in games or something else) and NFTs that are just stand alone. The ones with utility are performing way better these days than NFTs with no use purpose. NFTs that can generate income through staking in a play 2 earn game remain very popular and are holding up pretty nice price wise. So, it is important to do your research very good if and when you are planning to buy an NFT, or a collection of NFTs.
And example of this of course are the Splinterlands cards and Land plots, which have kept their value pretty well during this crypto dip.

One thing is for sure, the hype has fallen down, and only the projects with future and best art stay strong. Which is the only healthy way to have a sustainable economy.



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