NFT Analysis: Cryptocurrency value tanking affecting the industry?
The crypto world is currently experiencing some value tanking, mainly because of the ongoing commotion between Ukraine and Russia. Yes, it’s not just industries such as oil, wheat, metals, and many more which are being affected. The crypto market is also going down because of it.
Reports suggest that after the military operation in Ukraine commenced, cryptocurrencies saw a massive downfall which is roughly estimated to be around over $200 billion in total valuation. Most notable of course is for Bitcoin which tanked 8.6%* after the declaration while trading at $34,725. This has been the cryptocurrency’s lowest since the January 2022 dip, contributing to the overall 49% downfall it is experiencing since November 2021.
As for other crypto names, Ethereum plunged down by 7.4%*, valued at $2,404. And for Solana, it also tanked around 10%* and listed an $83 price per unit. Both of these cryptocurrencies are very much inclined with NFT creators and collectors. That is why there is no doubt that NFT enthusiasts all around the world may wonder if their world will also be affected.
*the value drops are at the time of writing and the market as the market is pretty volatile.
NFTs Going Down?
But still, NFTs are doing fine. Or should I say, good?
Data gathered by The Block shows that the NFT industry is one of the most dominant blockchain aspects in today’s world. A global NFT sales record of $7.3 billion has been listed last January despite the crypto market’s downward trend that was also seen this month.
NFT and play-to-earn game Axie Infinity by Sky Mavis also achieved a recent feat, making a total of $4 billion in sales since release. This is the first time an NFT game made this big, sitting behind NFT collection and sales platform OpenSea with $21.85 billion and fellow NFT market LooksRare with $16.85 billion.
Just massive money, isn’t it?
Imperfect NFT World
Yet as the saying goes, “nobody’s perfect.” And there ain’t no perfect world even in NFTs. A recent NFT project of an auction house, the Sotheby’s NFT sale, wherein a total of 104 CryptoPunks was canceled minutes after their supposed sale went off. Sotheby’s spokesperson Derek Parsons mentioned that “the lot was withdrawn prior to the sale following discussions with the consignor.” Yet no reason was given about why this happened.
The Sothesby’s thing is a concrete example of the NFT industry’s imperfections. A lot of money is involved with this stuff, of course. And these things really have an effect on the yet booming industry of NFTs, holding back what could’ve been the eyed Web3 dominance.
Are NFTs also going to lose value? – Overall thoughts
Slump here, withdrawal there, a lot of things are going on with this crazy yet massive crypto and NFT industry. But the common factor amongst all of these is, of course, money.
Entering this industry requires you to have money. But money is also the thing you can win here. And no industry in this world has a flawless record, especially in its beginning stages. That is why the legendary acronym DYOR is always present in this industry- as in “Do Your Own Research,” as well as the ultimate mantra “Invest what you can afford to lose.” You do not need to be a genius to be a crypto investor or an NFT holder, but preventing dumbness is a must.
We may see the effect of the Russia-Ukraine crypto value onslaught by the coming weeks for NFTs if it could be something that is really impactful. It’s really too early to declare if it’ll see a downward trend compared to the actual cryptocurrencies out there. But as of now, NFTs are still pretty doing well I must say.
Advise caution however, as NFT values sometimes closely reflect values of the traditional crytpocurrencies and in an extremely unstable market you might win big or lose big in a second.