Bloomberg: “the fall in NFT prices indicates a decrease in hype

According to the site Nonfungible.com, the average purchase price of collectible tokens (NFT) has decreased by 70% since February. This could mean that the NFT boom is slowly fading, according to Bloomberg analysts.

As of April 1, the average selling price of NFT was $1,400, while on February 22, it reached $4,300. Interest in the topic is also spurred by the sale of large lots by well-known auction houses. So, in early March, the auction house Christie’s sold a digital painting by the artist Beeple for $69.3 million. However, it is also not necessary to call the NFT sphere a “bubble”.

“It makes no sense to call the NFT industry a financial bubble. There is no bigger bubble than in cryptocurrencies. There are manias and irrational popularity, but cryptocurrencies will remain for a long time, as well as NFT,” says academic Chris Wilmer from the University of Pittsburgh.

Various companies are trying to use the technology to increase their sales. And while using NFT for digital art isn’t always justified, the technology is great for selling movies and music.

“Although cryptography can quickly and easily prove the authenticity of the NFT, it is quite easy to deceive users if they do not know how to do it. I think we are waiting for a wave of fraud in this area, ” said Wilmer.According to Google Trends, interest in collectible tokens has reached almost the same level as in initial token offerings (ICOs) during their boom in 2017.