Has Crypto Winter Ended? What’s Happening in the NFT Market TodayDecline of the NFT MarketBy 2023, the NFT market
had lost up to 95% of its value due to an uncontrolled flood of NFTs and asset depreciation. This was preceded by the collapse of major cryptocurrencies in 2022 (TerraUSD and Luna) and the FTX exchange. Bitcoin fell 77% below its all-time high.
What’s Happening in 2024?Experts from The Art Newspaper note that 2024 brings new prospects for the market. In December 2023, NFT sales volume exceeded $1 billion. Since the beginning of 2024, the market has been in a growth phase and could double its capitalization to $3.2 billion by 2027. Just in early March 2024, 574 Bored Ape Yacht Club items were purchased for $39.94 million.
In his review, creator and analyst
Cryptocholy also notes growth trends and recalls major sales: Beeple’s work for $69 million, domains for $15 million, and the Wu Tang Clan album for $4 million.
New Players in the Market and NFT CollectingInterest in NFTs is on the rise, attracting seasoned collectors. Unlike the speculative frenzy of 2021, today’s market is more mature. Crises of major auction houses like
Christie’s and
Sotheby’s open new opportunities for the NFT market.
“Now acquiring NFTs is more thoughtful and based on collectible preferences. People are less focused on instant price increases and more on enjoying the art,” says Mark Cuban, one of the investors in OpenSea.Traditional Art Market and NFTsArtists from the physical art world are increasingly turning to web3. New online and phygital galleries, festivals, and fairs are emerging. A notable example is
Art Dubai 2024, confirming that NFTs continue to evolve and their acquisition is becoming a new form of collecting.
What’s Next?Blockchain isn’t going away, so it’s necessary to rethink market values and create new rules of the game. Now is the time to expand your knowledge of art, try your hand at collecting, and follow young artists— they represent the future of NFTs and the global art scene.
What do you think about these trends? 💬