NFTs were really the hype a few years back, with some selling for millions of dollars. Celebrities and popular brands joined in, making it seem like the trend was unstoppable.
However, as the market has evolved, many people can tell that NFTs have lost a huge amount of their value. This article will help us look at the current state of some major NFTs, explore the reasons behind the price drops, and consider what might be next for NFTs.
Most NFTs are built on the Ethereum blockchain. So, each BFT has special details stored in it, information such as the creator, who owns it, or any other special features that make it unique.
High-Profile NFT Valuations: Then vs. Now
As already mentioned, the NFT market has experienced dramatic changes over the past few years. Many high-profile NFTs that sold for impossible prices have since lost much of their value. Let’s look at some notable examples of how NFT valuations changed over time.
Justin Bieber’s Bpres Ape (#3001)
In 2022, the famous pop star Justin Bieber bought Bored Ape NFT for $1.3 million when the market was actually booming. That was the moment when celebrities heavily invested in the Bored Ape Yacht Lcub (BAYC), which was considered a blue-chip NFT project.
However, due to market shifts, the value started to decrease. Recent reports suggest that the same NFT is now worth less than $60,000, marking a decline of over 95%.
Australian Open Tennus Ball NFTs
The Australian Open stepped into the NFT space by selling digital tennis ball NFTs, each connected to real-time match events. They introduced the “ArtBall” NFT project in 2022 when 6,776 NFTs were sold at 0.067ETH each, followed by an additional 2,454 NFTs in 2023 at 0.23 ETH each.
Thus, at first, this was an exciting project, but as the fame of this sport faded, so did the value of NFTs. Some estimates show that these NFTs have lost up to 90% of their original price. This only shows us the unpredictable nature of the NFT market.
Why NFTs are Losing Value?
The initial hype faded slowly, and the market faced a sharp decline. There are many reasons behind this downturn, and we’ll reveal all of them below.
Decreasing Investor Interest.
In the beginning, celebrities and influencers were very excited by these products, so there were a lot of buyers. However, as the popularity of NFTs decreased and early investors cashed out, fewer people were willing to spend large amounts of money on NFTs. Thus, without new demand, the prices started to fall.
Crypto and Economic Downturn
It’s no secret that NFT values are linked to the cryptocurrency market. As main cryptocurrencies such as Bitcoin and Ethereum started to lose value, sales of NFTs also slowed down. Moreover, rising inflation and higher interest rates made these risky investments less attractive.
What to expect from now on?
Even though the market is under a big question mark, not all NFTs will become worthless in the near future. Some popular collections, such as CryptoPunks and some Art Blocks projects, still have value as they are historically important and have a limited supply.
NFTs that offer actual benefits will also be part of everyday life, especially those who give access to exclusive memberships or services.
