CAN THE NFT MARKET DROP EVEN LOWER?

The market circumstances for non-fungible tokens (NFTs) in Summer 2022 have not been perfect. As NFT owners scurry back into dollars, several significant projects have dramatically decreased their project price floors.

The price floor, or the lowest Bored Ape Yacht Club (BAYC) NFT currently on the market, was roughly $98,220 as of June 21, 2022, down from over $400,000 as fast as late April.

This frequency of the BAYC collection has not been reached since October 2021.

Yup, this all happened this year

At the same time, the CryptoPunk NFTs price floor has plunged sharply below $74,000, a low not seen since early 2021.

According to CryptoSlam statistics, NFT monthly trading volumes nearly reached $5 billion in January 2022, but volumes have steadily declined since then.

According to CryptoSlam.com, the monthly trade volume with only about a week left in June is $650,461,250, representing an 86.17 percent reduction in volume since January 2022.

Despite the global economy’s difficulties, the number of new projects and use cases for the NFT industry in 2021 has surged.

What began as a small market for artists and content producers to sell their work has now grown to the world’s major fashion and entertainment sectors.

Among the well-known personalities and businesses involved in construction projects are:

Gucci

Paris Hilton’s

Snoop Dogg and Gary Vee

Nike LeBron James Adidas

Michael Jordan

Can the total market capitalization of NFTs go below $1 billion?

Although the NFT market capitalization is never inconceivable, it is exceedingly unlikely. According to CoinMarketCap.com statistics, the overall NFT market cap as of June 22, 2022, is slightly more than $12 billion.

For the NFT market cap to fall to these levels, the whole value of the market would have to lose by 91.84 percent, implying that most of the NFT market value has been drained.

This occurrence is exceedingly unlikely unless you are an NFT mega-bear.

NFTs have expanded into other industries due to new use cases, including tokenized real estate and digital identities.

According to market capitalization, the more NFTs that can bleed into new industries and reach everyday solid use cases, the more NFT market value will expand.

Why is the NFT Market Declining?

To understand why the NFT market has been declining, consider the situation of the world economy.The financial market prognosis for summer 2022 is unfavorable, and consumers are expected to sell riskier assets such as NFTs in order to pay bills and catch up on rent.

NFTs are still a tiny sector with huge ambitions, and innovation will experience growing pains.

The NFT market is declining due to a worldwide economic recession, not a lack of ideas and innovation. The digital asset market has historically had a similar association to the stock market. As long as the Nasdaq and S&amp are trending downward, so will the NFT market.

How to Profit from Shorting NFT and Metaverse Tokens

While it is currently not feasible to short NFT collections, tokens related to NFTs and the metaverse can be shorted on Huobi and FTX. Some of these platforms are not legal in the United States.

Decentraland (MANA), Ape Coin (APE), Sandbox (SAND), and Axie Infinity are among the non-exhaustive list of NFT and metaverse coins (AXS).

Shorting and utilizing margin is dangerous, so before you trade, educate yourself. Paper trading stocks is a simple approach to learning how to short and use margin.

Can the NFT market cap reach $100 billion in 2022?

With only six months left in 2022, a nearly tenfold increase in the NFT market capitalization is unlikely but not impossible. Ask yourself a few critical questions before making a forecast for the future.

What is the worldwide worth of NFTs in terms of sales, production, and consumption?

What are the global NFT market participants’ NFT market opportunities and threats?

Which application or product is likely to have the most additional growth?

How big is the market for these kinds of applications?

If the production value and consumption trends for NFTs increase as new applications are identified, the NFT industry might reach a market size of $100 billion.

However, rising this much in six months would need the NFT market to produce viable goods and applications at a breakneck pace. Simultaneously, for the industry to continue developing, NFTs will need to capture market share in mature areas of the economy, such as real estate.

Where Can I Purchase NFTs?

If you want to buy your first NFT using Ethereum, you can utilize OpenSea, Rarible, or Mintable. These platforms feature older collections, which are more commonly referred to as blue chips in the NFT market.

For smaller investors, gas fees or transaction expenses might be a barrier to entry. Therefore Solanart.com, Axie Infinity, and NFT.com are possible alternatives.

Will the NFT Market Crash Further?

The NFT market has fared poorly in the last month, and the worsening market circumstances have aggravated the issue for NFT owners. If the NFT market continues to tumble, it will most likely be due to tightening global financial affairs and increasing market panic.

Tighter financial conditions tend to harm riskier assets such as NFTs since investors rely on riskier assets for liquidity to support their bottom line. Before calling for a short- to mid-term bottom in the NFT market, inflation and anxiety levels must reduce.

Is It Time to Buy NFTs?

The markets appear to be in a condition of doom and gloom, but if you delve behind the hood, you may discover that the NFT industry is really resoundingly optimistic.

Major corporations have initiated attempts to bring NFT capabilities to the forefront of their massive Web2 user bases from the beginning of 2022.

Meta, the parent company of both Facebook and Instagram, is actively developing capabilities that will enable users to use NFTs as profile images and mint NFTs on the site. Meanwhile, Twitter has debuted a new NFT profile photo option similar to Meta’s.

This continual Web2 adoption of NFTs indicates that the market’s long-term prognosis is favorable, and the recent price drop is only a hiccup.

If you are a firm believer in the sector, you should have a long-term perspective on your investments and invest in areas with a strong feeling of community and utility.

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