NFT – Decline and Concerns in the “Plain JPEG” Market

Compilation: Sister Shen, Deep Chain DCNews

The NFT market has experienced a severe downturn, with prominent projects such as Red Bean and Boring Ape Yacht Club (BAYC) seeing significant price drops. The minimum value for Azuki NFTs has been reduced to $21,500 per NFT, and the minimum price for the main Azuki series has been reduced from 17 Ether ($33,300) to 6 Ether ($11,800). Likewise, BAYC suffered an 11% loss, dropping its value below 30 ETH. These price drops have raised concerns among investors and enthusiasts, pointing to a broader trend in the NFT market.

The drop in NFT prices can be partially attributed to the community backlash following the fall of the red bean element. The negative sentiment surrounding the project appears to have spillover effects on other projects, including BAYC. The interconnected nature of the NFT market has led to price drops for various series.

Additionally, data from Dune Analytics shows a downward trend in daily NFT transactions over the past three months. Global daily NFT trading volume dropped from about $60 million in March to an average of $20 million per day in June. Likewise, the number of NFT transactions fell from about 44,000 in March to about 25,000 in June. These statistics point to a significant contraction in NFT market activity.

Given these losses and falling prices, it's understandable why some might question the long-term prospects of the NFT market as an investment opportunity. The skepticism has been fueled by large drops in value, such as Justin Bieber's regrets about buying Boring Ape tokens, which he bought for $1.3 million and are now worth $59,090, for a net loss of $1.24 million.

However, the subject must be approached with a balanced perspective. The recent decline in the NFT market does not necessarily mean that the overall market is coming to an end. Market volatility and corrections are common in any investment environment, and the NFT market is no exception.

**NFT, despite being plain JPEG at its core, represents a unique digital asset with provable ownership and scarcity. **The underlying technology has potential use cases beyond the arts, such as gaming, virtual real estate, and intellectual property management. While the current market downturn has raised concerns, it is most important to consider the broader context and potential long-term value of NFTs. **

Ultimately, the decision to invest in NFTs should be based on careful research, understanding of market dynamics, and personal risk tolerance. As with any investment, diversification and thorough evaluation of projects is critical. As the NFT market matures, it may undergo further changes and adaptations, and it remains to be seen how it will develop in the future.