- A study indicated that the NFT market is aimed at attaining a valuation of $230 billion by 2030.
- Bored Ape Yacht Club has certainly taken a hit, with floor prices dropping below $100,000 this year.
- NFT market conditions have been largely correlated to and reliant upon the general crypto market over the last crypto cycle.
In a recent study conducted, the NFT market is aimed at a $230 billion valuation by the year 2030, which has increased 20 times as compared to its height in 2021.
Market conditions have bottomed, and as we are able to see, scams and hacks are coming more frequently, and low-quality projects are surfing. This has led to several questions regarding the value of NFTs and their existence in Web3.
The intensity can be measured while witnessing that projects such as BAYC are taking hits and slumping below the mark of $100,00 0 this year. As the general crypto market is down, the correlation with the NFT market is also affecting the prices of these NFTs.
One of the major role players in the current situation was the soaring noted in the technology and digital assets’ valuation and investors’ realization to justify speculations on the NFT asset class.
Well, the fact that NFTs are relatively illiquid and scarce by nature manages to set up an atmosphere for a drastic surge in prices and, ultimately, an even more dramatic backdown. The reality was inevitable to strike following the over-speculation period as actions and remedies to the current issues were required to ensure growth.
The recent security breaches reveal some points of failure in the existing system, and this has paved the way for us to work even harder to fix them and prevent them from causing any harm in the future. In addition to this, firms and projects are required to look internally at securing users’ assets.
Moreover, another thing to lay an emphasis on is the fact that marketplaces will require to begin curating artwork to make sure that the highest quality pieces are not drowned out by the huge number of NFTs and duplicates.