NFT tokens were one of the most popular topics in the crypto world last year. While they’ve been around for a while, it wasn’t until 2017 that they really started to gain attention. With new platforms and more interest, NFTs are still considered an important part of crypto adoption and innovation.
As Bitcoin declines, NFT tokens have been mixed. Some have thrived amid this correction, while others struggled and failed. Let’s check some NFT tokens that moved differently.
(All results are based on Binance)
ApeCoin had a pretty decent launch last March 2022 on Binance. However, it made a huge highlight after it surged 134.50% in the following month despite Bitcoin’s crabby movements. It peaked at $27 after starting from $10.
Many consider Audius’ AUDIO tokens as one of the most volatile NFT-based coins right now especially since it makes quite the percentages in just a few minutes. However, while it did crash with the rest of the coins during the December correction, it did manage to bring in big numbers in March and April 2022.
In March, it made a 79% gain and followed up with more than 70% in April before the massive correction at the end of the month.
Used as a currency for the SuperRare platform, RARE made a good profit for the traders in the short term for the first few months of 2022 as it spiked 88% in February and 116% in March before it continuously declined in April.
Axie Infinity broke records in 2021 but hasn’t done much in early 2022. AXS didn’t have much traction after it peaked at $166 in November 2021. Ever since then, it has dropped hard down to $29.90 as of this writing.
Smooth Love Potion
SLP is Axie’s in-game currency that performed above and beyond many NFT tokens last February 2022 with an average of 328%. Although, it has gone down quite a lot from its Feb peak of $0.04 to a now-measly $0.01.
How Bitcoin’s price decline is affecting different types of NFT tokens
These tokens are still growing in popularity, despite the BTC correction. They can be used to represent ownership over a particular item or asset. This means that these tokens can be viewed as valuable collectibles and tradeable assets. In fact, there’s an entire market for NFT trading, with platforms such as OpenSea allowing users to buy and sell digital assets.
Developers initially created these types of tokens to mimic traditional financial instruments like stocks or bonds, but they can also be used for non-fungible items too. For example, CryptoKitties (the first major mass-adopted game built on Ethereum) uses ERC-721 fungible tokens to represent each digital cat. However, while fungible tokens have a lot of potential, they’ve generally struggled during the BTC correction. This is likely due to the fact that many of these assets are still very new and experimental, so they’re not yet as established or trusted as non-fungible tokens.
Future contracts are another type of NFT that have seen mixed results during the BTC correction. These contracts allow two parties to agree to buy or sell an asset at a future date, at a price that’s set today. This can be useful for hedging against price fluctuations, but it also means that these contracts are directly affected by the price of BTC.
While it seems non-fungible tokens have moved independently during this correction, they’re not without challenges. There’s still uncertainty and confusion around how these tokens should be taxed or regulated. This means that more work will need to be done before reaching mainstream adoption.