NFT Bubble: What Really Happened? Has the NFT market bubble burst?

NFT (non-fungible token), as a hot topic in the field of cryptographic artwork and digital assets, has attracted widespread attention recently. With the influx of artists, musicians and investors, the NFT market has expanded rapidly, causing some people to worry about the NFT bubble. So, what is the NFT bubble? Has the NFT bubble burst? In this article, php editor Xinyi will reveal the truth about the NFT bubble and explore its future development trends.

What is NFT bubble?

NFT bubble refers to an unsustainable economic phenomenon whose main feature is the rapid increase in NFT market prices, driven by widespread speculation and speculative demand. A bubble forms when the market value of an NFT exceeds its intrinsic value. This phenomenon is usually short-lived and can lead to market crashes and investor losses. Therefore, rational judgment and risk management are very important for participants in the NFT market.

A "bubble" can occur in any industry when asking prices exceed reasonable or historically normal levels. Interestingly, these exaggerated terms often involve empty speculation. Just like the dot-com startups in the dot-com bubble of the 1990s and the unregulated lending practices that caused the housing bubble to burst and trigger the Great Recession.

Eventually, demand will shrink, and this is the case with NFTs. This led to a market downturn and subsequent NFT market collapse.

Callaxy CEO and co-founder Solo Ceesay pointed out that the NFT bubble is the result of market frenzy. Calaxy is a blockchain-powered social marketplace that enables content creators to easily earn money from digital interactions with fans and followers. In a bull market, prices sometimes become overly exaggerated because investors are too optimistic about price action.

The bubble itself is not a one-time event. Sissa noted that unlike in the past, bubbles are now an integral part of market correction cycles. And if current market conditions persist, this could be the first NFT bubble on record.

Has the NFT bubble burst?

According to some, the NFT bubble has burst, but experts predict that NFTs will have a renaissance as blockchain-enhancing tools alongside everyday applications.

The era of non-fungible tokens (NFTs) and their collections soaring into the millions may be coming to an end, as the colorful, blockchain-encrypted JPEG universe could be at serious risk of an NFT collapse.

If NFT sales are to recover from the market collapse spurred by the impact of FTX, the crypto winter, and NFT mania fatigue, experts predict that a second sale will reintroduce NFT’s role in Web3.

As Meta’s head of partnerships, Katie Richman, who oversees new product experiments, wrote on her Medium blog A Metaverse Manifesto, “The NFT bubble bursting is not the end of NFTs. It’s the end of stupid NFTs. ”

The above is the detailed content of NFT Bubble: What Really Happened? Has the NFT market bubble burst?. For more information, please follow other related articles on the PHP Chinese website!