Is the NFT Market Dead?

As the cryptocurrency value crashed earlier in April and May 2022, NFT (non-fungible tokens) assets are now worth a fraction of their purchase price as the market for the assets crashed by 87 percent. Art creators made millions by selling NFTs. But, now their creations are almost worthless. What a pity!

In the past, we had discussed what NFTs were and reported that the NFT market was hot.  We also discussed at length that they were considered Halal like any other asset if they met certain conditions.

In the past, NFT creators, art galleries, and museums enticed a large number of people to invest in NFTs, the new asset class in droves. We had a large number of Muslims involved in the buying and selling of NFTs, too. But the bubble seems to have burst. The market collapsed and so did the hopes of millions of NFT investors as well.

It is sad news for the industry and for a lot of Muslims too as many of them had been investing heavily in this new digital asset class, especially in Indonesia and many other countries.

In the last month, nearly $500 billion has been wiped from the crypto space. This has negatively impacted the NFT market as well.

Marketplaces such as OpenSea have been consistently reporting a huge drop in their overall sales figure.

But, does this spate of bad news indicates that the NFT market is dead? We don’t think so. It’s hard to say NFTs are dead when the biggest-ever trading day occurred within the past two weeks.

In the words of CNET, ‘The digital monkeys are down but don’t count them out just yet. Why? The economy at large is in pain.

Why Are NFTs Still Alive?

The NFTs Floor Price is Not Dropping

The NFTs floor price is not decreasing much.  They may be worth much less than before in dollar terms. However, as they are traded in ETH, a type of cryptocurrency the value is still generally speaking the same as in the past.

Major Social Media Platforms Have Big Plans for NFTs

Major social media platforms such as Instagram, Twitter, and Reddit have announced that they plan to implement NFTs shortly.

NFTs Have A Huge Impact on the Gaming Industry

Game developers have made a large number of games based on blockchain technology.  These games encourage players to keep on playing them and be rewarded with NFTs and other native cryptocurrency tokens.

Conclusion

NFTs are far from dead. Their value has decreased.  However, they are expected to rebound.