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NFT Hype Running Out of Steam As Prices Crash: Report

The average price of non-fungible tokens (NFTs) has fallen from its all-time high, weeks after the digital collectibles craze took a euphoric turn.

Bloomberg reports that the average price of NFTs has plunged by 67% from a record high of $4,300 in February 2021 to about $1,400.

Source: Bloomberg

NFTs are digital tokens that have unique cryptographic properties which enable the blockchain to verify the originality and ownership of digital assets including artworks, parcels of virtual lands, and collectibles.

Interest in NFTs has reached its apex last month when digital artist Beeple sold his artwork dubbed “Everydays: The First 5000 Days” for a record price of $69,346,250 at Christie’s auction house.

Celebrities also jumped on the bandwagon with rapper Snoop Dogg unveiling a collection of non-fungible tokens labeled “A Journey with Dogg” and Grammy-award winner The Weeknd launching his own NFT collection that includes limited edition artwork and new music.

Ari Paul, CIO of blockchain and crypto investment firm BlockTower Capital, warns that the entire NFT market is in the midst of a bubble.

“It’s simultaneously a bubble and a game-changer, like the internet in 1999 or Bitcoin in 2017. In my opinion, existing NFT valuations are a bubble *and* total value of all NFTs will be 100x here in 5 years.”

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