The NFT market has taken a long-expected, but unwelcomed downturn over the last couple of months. We all knew the euphoria couldn’t last forever, but this rapid decline into panic has been a rude awakening for NFT investors. Many NFT sets are experiencing their all-time lows. Established blue chips, while still holding relatively strong, are experiencing significant dips (BAYC is still down over 30% from its previous highs). Newly launched projects are struggling to find sustainable volume, causing their floor price to fall out immediately following mint. This has resulted in “big-hype” launches failing to mint out. Projects with 100,000 followers on Twitter or 50,000 members in Discord used to be an easy 10x after mint; now they’re barely selling out.
A recent project that comes to mind is SixthRéseau: a lifestyle brand that launched their NFT set over the weekend with nearly 200k on Twitter, and over 100k in Discord. This set would have been a guaranteed success in the bull market; instead, they sold less than 2000 NFTs during their whitelist & public sale. This is a prime example of how far the markets can heavily influence the direction of new projects.
The general sentiment in this space has become increasingly bearish. This brings us to the all-important question: Are NFTs dying? In my opinion (not financial advice), no – it will take a lot more than a couple of months of low-volume to kill this space. So then what’s the deal? Will NFTs ever return to their previous levels?
This question is harder to answer – we can’t know for sure if (or when) we will get back to that euphoric period of rapidly surging volume and skyrocketing floor prices. However, expect the market to turn back around at some point. We are still VERY early, and there is plenty of money that is bound to find its way into the NFT space. Look at these dips as an opportunity to gain entry to some of those “blue chip” previously unattainable projects.
I’ll leave you with a piece of advice that I wish I had told myself during the euphoric periods: always buy projects that you truly believe in. Even during a bear market, it will feel much less scary holding onto something that you love.