Non-fungible tokens (NFTs) — digital assets that represent a wide range of tangible and intangible items and are recorded on a blockchain — reached peak hype a few years ago.
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At the time, they attracted massive amounts of money. For instance, auction house Christie’s sold digital artist Beeple’s collage NFT for $69.34 million in March 2021. Other top NFT sales in 2021 included a two-lot Bored Ape Yacht Club (BAYC) auction from Sothesby’s, which realized $26.2 million for 202 NFTs.
Are NFTs Still Viable Investments in 2024?
Following explosive growth, trading volumes of NFTs also took a rapid tumble afterwards — down a whopping 97% in September 2022 from its record high of $17 billion in January 2022, as Bloomberg detailed at the time.
While NFTs sales have been lagging since, as Benzinga reported, an enormous sale occurred in March: CryptoPunk 3100 sold for 4,500 ETH, or $16 million.
And this, Benzinga further noted, could be a harbinger of an NFT revival.
“We’ve certainly seen the NFT market go through a boom-bust hype cycle, with so many PFP-focused [profile pictures] collections soaring, crashing and never recovering,” said Anthony Georgiades, general partner at Innovating Capital.
However, Georgiades also noted that several quality collections have flourished and, in turn, have shown they are likely to endure for the foreseeable future.
“People like digital art, after all, so I suspect this aspect of NFTs will continue to show some strength,” he said.
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Less Speculative Market for NFTs at This Time
According to some experts, NFTs’ seemingly resurgence this year is less about speculative hype and more about meaningful, real-world applications.
“NFTs are extending their utility beyond digital art into sectors like gaming, real estate, and digital identity, showcasing their potential for sustainable investment opportunities,” said Lani Dizon, co-founder of Zenza Capital.
Shiti Manghani, CEO of NFT gaming app STEPN, echoed the above notion, saying the true value of NFTs lies in their utility.
“If you believe in a…
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