Why Have Holders Increased 90% Even Though Top NFTs Have Dropped 95%?
Numerous well-known non-fungible tokens (NFTs) have seen a sharp decline in value during the past year. The pattern is consistent with the depreciating value of assets in the metaverse in 2023. Last year, metaverse properties were thought to be the best virtual places for investment.
Popular NFT projects including Doodles, Invisible Friends, Moonbirds, and Goblintown have lost up to 95% of their value. The value of blue chip NFT collections alone has decreased by an average of more than 40%. The Blue Chip Index declined from its peak of 12,394 ETH in July 2022 to 7,446 ETH, according to NFTGo statistics.
Despite this, non-fungibles investors are unconcerned by the continuous value decline. Blue chip NFT holders have climbed by more than 90% during the past year. During this time, the number of suppliers increased by 32% while the number of customers decreased by 30%.
Why are NFT holders becoming more numerous?
Although some predict a prolonged and deeper decrease in NFT pricing, some investors believe that this is the perfect time to buy since they anticipate a recovery. Investors most likely think that the non-fungible hype from 2021 will return. The prices non-fungibles can command in the ideal market are widely known. As a result, the current price fall can look to be a business opportunity.
In addition, despite the financial challenges, fresh investors are still drawn to the NFT ecosystem. Even crypto skeptic Peter Schiff set up an NFT firm on the Bitcoin blockchain using Ordinals.
There is no disputing the promise NFTs offer in the future, notwithstanding the declining value of top collections. Non-fungibles have applications outside of merely art and video games. Governments have started investigating blockchain technology to improve the efficiency of their record-keeping. Tickets for numerous events are NFTs. In the future of digital technology, asset tokenization and non-fungibles still have a ways to go.