Major signals
- NFTs, or non-fungible tokens, offer “ownership” of digital artwork.
- Major artists, like Grimes, are already selling their works as NFTs.
- NFT tokens are primarily locked to the blockchain of the cryptocurrency Ethereum
- Since their rise, NFTs have gained enormous attention but holders aren't aware that their value is tricky to track.
Here are the opinions shared by Twitter accounts.
tuba (@0xtuba) March 26, 2021
In a silent crash, speculators might not even be aware that one is underway — buyers simply evaporate and sellers fail to move their wares. However, metrics such as “floor price” — the lowest price at which a NFT can be bought for a particular project — as well as total volume can indicate that a bull is turning into a bear.
This could mean bad tidings in the times ahead for NFT collectors, the signs indicate that a nasty silent crash is on its way.
A company of repute when it concerns NFT projects for collectors, CrytoPunks, has seen a 40% drop in the floor price to 14ET (approximately $28,000 at the time of this publication). The admission of this price has resulted in some horror stories: one investor claimed to have sold a punk for 16 ETH compared to the 25.5 prices of purchase of the stock. Another has said he sold his stock at 27.99 after purchase a 42 ETH buying price:
Punk 8282 bought for 27.99 ETH ($57,228.07 USD) by 0xd3e2e7 from 0x691b87. https://t.co/NnobRb079D #cryptopunks #ethereum pic.twitter.com/rhXwiDraz6
CryptoPunks Bot (@cryptopunksbot) April 3, 2021
CrytopPunks are not the only Cryptocurrency project having a correction across many markets. Evaluate.market data indicates that sales volume in different price categories for NBA Top Shot has experienced a steep decline since the famous February 22 high.
Jordan a Top Shot enthusiast studied the charts and points at two specific populations for the abrupt fall.
“The market has been trending downward since the Feb 22. It seems like there are two types of sellers. One, the investor who got in early and wants to cash out with exponential profit. Two, the investor who bought at or near the top and can’t stomach to watch their investment lose value by the day,” he said.
(@jfresshhh_) April 3, 2021
It is never easy to watch stocks plunge. Nonfungible, the market-tracking website says the pullback is affecting the whole market, from the total number of sales, the total value sales and active wallets are on a 7day to 30- day basis.
He reasons that this is a likely healthy and short-term pullback.
“I think it’s a healthy, relatively short-term correction. The rate at which prices rose from Jan 1 to Feb 22 was unsustainable. I think the next few months will continue to be bumpy, but I’m very bullish overall.”, says Jordan.
