In 2021, the NFT market capitalisation crossed the $14.27 billion mark, everyone remembers the investment frenzy on such sensational NFTs as pixelated pictures of Cryptopunks, Bored Ape Yacht Club monkeys, Meebits 3d humans without any usability value in the beginning.
🤩 Cryptopunk, number 2338, was sold for a very impressive sum of money. The token was sold in August 2021 for 1,500 ETH or $4.38 million at the then ether exchange rate, with an early purchase of this punk for $443 in 2018. This is one of the most expensive and lucrative NFT deals of this series.
In 2022, on the other hand, demand for NFTs fell by 90% and the average price of the same BAYC monkeys dropped from a million dollars to $130,000.
Has this deterred investors?
Sophisticated investors are quite optimistic about the drop in demand as the geopolitical crisis has caused all markets to fall and the purchasing power of ordinary investors to decline.
But prepared, experienced investors see it more as a good opportunity: “Buy fear, sell greed”, says the golden rule of investing. Moreover, many analysts forecast that by 20Z0, the NFT market will reach $ 21 billion, that is, it will grow 20+ times, which is very promising in terms of risk/reward ratio.
What can we advise?
Better buy NFTs with specific value and good usability, you can rent out such NFTs even in times of low liquidity, there are already dozens of services which allow you to do it without risk.
And it is better to invest in such projects in the early stages for the long term, weighing all the risks and studying each project well before investing.