Topic: Hype around NFTs have dropped a lot (Read 410 times)

It's same with NFTs if someone like Saylor decides to make their buys public same way, by sharing tx and signing with the wallet as a proof. That's really not NFT's fault that people aren't doing it more, it's just the participants aren't billionaire CEOs, and i agree that big part of those trades were pumping their own volume, wash trading and money laundering.

But there were definitely real players involved, and i doubt that most of them even knew what they were doing. I remember listening some podcast where even OG ape investors later found out that how those actually worked, and how the images weren't stored in the blockchain.

Some people just saw them as trendy and cool, or luxury items like jewelry and art that some famous people were connected with. I doubt that any of those famous people even bought them. But that they were bought to them for free PR.

But i am guessing that majority of people saw them as sign of "new money", tacky and worthless.

I am pretty sure that we are going to end up with a lot of people hyping up whatever BS is next, these people just want hype and quick buck and that is why they end up trading these type of stuff and that is why I am not entirely sure about anything else. It is clear that we are going to end up with a much larger situation, we need to consider this to be some amazing project in our dreams but hyped stuff can't be like that.

So if you really want to see NFT people, just look whatever is trending, they are there ,and they are trying to make the most out of whatever they have. Obviously it is a tough situation to be in, but we are going to make a good return from NFT's without a doubt, we just need to make sure that we can make a decent profit out of what we have.

Hypes are always temporary. Last cycle we had the trend around NFTs and Blockchain games, but right now the tendency of the market completely changed, as it's more focused on memecoins and those Telegram's airdrops (which bring a similar concept to games).

The responsible for that drop is the fact speculators are investing large sums of money in another niches of crypto market. If there was big money coming into NFTs, we would still see a large interest from the public for it. People are always chasing money, so naturally they will be where money is.

I'm actually surprised that memecoins are still a thing in crypto market, because it was also a phenomenon present in previous bull run of 2021, with Doge and Shiba. It seems memecoin is an easy mechanism to drive investors' attention, so speculators insisted on this one and boosted the niche for another round. Be careful, though, because it's not that different compared to investing in Ponzi schemes...

You're correct, but the guy linked by @pangu is quite comparable with Saylor as he's a leader of a blockchain games company, not some random scammer or price manipulator.

It is of course difficult to know who's a good prophet. A conflict-of-interest however lowers a person's credibility. The rest is ... the soundness of arguments. And in this case, the argument the blockchain gaming guy brought up is that people want to increase their status with seemingly valueless things. This is a very general and also somewhat trivial argument and it can apply to a lot of collectibles-type stuff, from stamps up to Lambos.

Saylor has also not really brought up good arguments why Bitcoin should reach millions or even trillions. Even if the Central Banks buy Bitcoin as if it was gold, it would need them (worldwide!) to build up the same amount of reserves than gold reserves to justify gold's current "marketcap", which is approximately 12 (American) trillion and thus would be equivalent to a $600.000 Bitcoin, not a $10.000.000 Bitcoin (if you want to discuss this, I think another thread would be better as it's quite OT here ...)

Interesting, I didn't know this kind of tokens, thanks for mentioning

That's of course also linked to the fact that art-based NFTs are mostly extremely cheap to create, and thus such manipulations are easy, because you don't need much capital to inflate them in a way they "get noticed" by collectors ("the market").

The NFT class I was mentioning, which is linked to a real product, instead would not be that easily manipulable. In some cases of speculative products, like the fractioned real estate-based tokens you mentioned, there may be indeed some potential (for example it's parts of a building designed by a star architect), but it's much more limited as you would need to invest a lot of "real money" to really move the prices. Big companies and super-rich individuals can of course afford that, but I think the success would be much more limited than with the "low-cap" "art-based" NFTs.

Memes and NFTs - their saturation of the market is only comparable to the amount of reboots they've got through the times I've seen them everywhere.
They spark bright, a collection or one individual picture, and then they fade away.
People search for something different these days.

That's another factor and for so many of those NFT spreading around in the scene its hard for people to locate which of this project is good to invest. Since so far right now there are so many scams in the scene. Its like it follow certain tracks on what happen to ICO's before.

I also don't get a point on why people still got fascinated on those arts while the fact they really cannot use it anywhere and there's huge chance that what they buy at expensive price may drop badly especially if the hype of those project subside and there are no people interested to buy that collection.

I honestly think the NFT hype dropped due to oversaturation, declining novelty, scams, and the broader crypto market downturn.

Also NFT's don't serve any purpose, they're a collectable.

You are talking about something that is a more pervasive problem than the eye can catch.


I agree, but as you were rightfully speculating here, a framework that is able to maintain integrity (as much as possible) is yet to be developed. Maybe it could work with those SBTs that Buterin brought up where reputation can be built per pseudonym. That would allow for an impersonal market to develop across boarders, while at the same time holding up idealistic values like fair market value going hand in hand with highest informational efficiency. Or I should say highest possible informational efficiency, as perfect informational efficiency is unattainable anyway. But it is a hard nut to crack in decentralized networks like NFTs have perfectly proven as owners clearly bought their own NFTs at inflated prices.

But you see the same thing in the real world when this sheikh bought a piece of art for $460 million or something and my immediate inner responser was that he probably has his entire basement filled with more art of the same kind. By inflating the prices over time, an entire illiquid and scarce asset class can be brutally manipulated. That is not so much the case with Bitcoin anymore. If the sheikh has secretly bought 20 pieces of art of that kind for $50 million on average, paying $460 million 10 years later at an auction could raise the price for all other pieces (which it likely will), and if he were to sell every piece for $75 million afterwards, he would already be in profit.

I know animoca projects or at least the one they invested in has been consistently using NFT so I can understand that they're bullish about it, so many of their business are all about NFT.
but personally the main reason that triggers NFT boom back then was massive pump and dump scheme with some NFT valued millions of dollars just for existing.
as of now, so many already lost their money, the dumb money already got their wallet drained by the smart money.

right now what's left is just remnant of past NFT crazes, I don't think it's gonna be easy to make something "even bigger" than the NFT craze in 2021, moreover we're talking about massive liquidity here, nobody want to buy random NFT for millions anymore.

I'm always skeptical if someone who makes their money with a certain product predicts that exactly this product will grow. (and for the same reason, Michael Saylor isn't a credible Bitcoin price prophet).
However, of course he may be right. I think NFTs fads come and go in waves, and it's not completely impossible that their comeback will be bigger than the 2021 fad. Even complete bullshit like ORDI (not exactly a NFT but based on the same value proposition, to own "something scarce") is still quite valuable, to my surprise.
And yes, he's right, some people are dumb enough to invest money in things they think will increase their social status even if it has absolutely no value-of-use.

I think tokenized assets can work in certain realms, but in highly regulated asset classes like stocks they don't really make much sense. Blockchain technology isn't necessary for trading them. So the only use case to offer them in a "tokenized" form is that they are easier to buy and sell with cryptocurrencies, but even this can be put in doubt because brokers can simply use crypto payment processor interfaces.

I'm more curious about tokenized assets without such strict regulations, like they were already implemented with some commodities (like gold or soybeans), but you could also map other kinds of products to fungible or non-fungible assets (depending on the character of the product) and then create some synthetic currencies based on a "index" of these products, which could emerge as a new class of stablecoin without the strict regulations of the "fiat-based" stablecoins and also without the inflation risk.

Exactly, it is undeniable that the charm of NFT last season and now is still very different. We remember very well at the beginning of the bullrun last season, how the NFT hype was very high. Many influencers, artists, and influential people entered the NFT world, many new businesses took NFTs and sold them. Many people carelessly made their NFTs from things that should not be sold as NFTs. But now, NFT seems to have no echo anymore, even being somewhat sidelined, because now the hype is still meme coins and various mini games on Telegram. or even, now it will start to focus on AI coins. Well, indeed, everything has its own era. Whether NFT will be hype again or not, we can't predict it exactly.

NFTs will be ‘even bigger’ than they were in 2021:
https://cointelegraph.com/news/animoca-brands-yat-siu-interview-bitcoin-mena-2024

Yes,if you are really that trying to look Ex. Zora in base network on which this is the latest one on which i have seen out their NFT is really that making up some noise. Its creator are really that making some good chunks of money as of this moment on which this one simply shows that theres still so much interest that we are really seeing on NFT's on which this do really implies that its not still dead and there are really that much interest of it but if we do reslly tend to compare out on previous cycle then we can really say that volume had really decline that much or something that you can make out some comparison in between. There are really those who are really that interested on dealing up with NFT's despite of the situation because they can still make money with it.

The current narrative will really be on Depins i should say and AI on where there are already some projects on which we can be able to tell on where they are really that wrecking up that much money or volume and the number of projects that do succeed as of this moment. As an investor then it will really be that important on having some in depth analysis on which one will really be that you diving into because if you wont really be having at least those considerations then you might be ending up with a bad project.

the hype of NFTs has long ended and it is very reasonable seeing how the development of the NFTs industry is nothing more than a collection asset that promises high returns without any real use. there are many NFTs projects, ranging from real estate to those launched by artists, but all of them end up just being promises without any real implementation, and cause people's expectations to be disappointed and slowly leave this. that's what caused this NFTs trend to quickly disappear, and even if there are those who survive until now, there are only a few, and even if there are new NFTs that emerge and manage to get significant percent growth, it's just a momentary hype.

NFT word is too general. It is like you are saying that cryptos or altcoins are a hoax too. I mean there are still projects under it that are legit and still running up until now. Maybe their value is not only the same as before that is still high but even a regular crypto project can experience like that.

If their devs can't do much, maybe a bull run or an alt season can help them to pump again, even temporarily only or for a short period of time. Apart from that, some trends can also come back, so what if NFT trend will also return in the future? That should help their price as well. Real money might also mean two things for some of us. It is the quality of the product or if it has a good utility. Having so will also make its price rise because it can get a continuous demand from the public.

There are people who doesn't really care about it though, so they can go for a shit coin as long as they can benefit on their pump. We whine a lot on NFT and some other cryptos but if we think about it well, things like this happens too on the real world. In the art category for example; have you heard of that simple banana artwork that cost millions or even billions? Some can think that it is another way to launder money, same impression they have in the crypto world.

I think everything will be tokenized at some point. Deeds, stocks, contracts, etc. Sure, the NFTs that are “art” are worthless in my opinion, but the technology is real and will definitely grow and become infinitely more useful. I’m surprised the Magic Eden airdrop is so high valued. Thankful to get a free payday and I know a few folks who got around 5 figures. Certainly doesn’t seem like NFTs are dead. Just the irrational collecting and overpaying for “art” is.

I don't think we'll see NFTS hype of 2020-2021 anymore..but let's see cos market trends are in circles. For ME I got the airdrop and I just locked it for more on Poolx.

The Apr is good and based on the token utilities, it could get to dual figures soon.

But nfts isn't ponzi or I'm getting your position wrong?

it produces a big sensation as if it can get profit, indeed ponzi always exists and it continues, with procedures that are always different, by following the developments that occur, even though now NFT with its trading volume, people find it difficult to believe it, maybe they see the developments that occur and it continues with prices that are considered to affect the value of NFT so they judge it.

Seems they were just the craze of the last cycle. Most of them are trading for a tiny fraction of what they were in 2020/2021. They were just the ICO (2017) type hype of the last cycle. The cynic in me thinks a lot of it was money laundering. It could be very easy to buy NFTs for hugely inflated prices on Opensea which would trick morons into buying them for big money. I wonder what the dumb money will be attracted to this time, meme coins?

This is so true. There will always be one ponzi or the other.
Now the reigning ones are memecoins. When I saw different celebrities making their own coin and advertising it for their fans I knew it was another scam opportunity for people because most if not all of these people rug-pulled the coin.
Anybody with a thinking brain could see that NFTs are a scam that would benefit the first set of people and leave dust for the rest.
Now, every trending thing you can think of has a memecoin. A lot of celebrities all have memecoins. Some have already rug pulled while others are still waiting for the right time.

Just like other ponzi schemes, there are those who make a profit out of the scheme and they're genuinely advising others to invest in it without knowing that they're calling people to get involved in a ponzi. I don't think there's any difference between memes and gambling.

It's not really a production cost. The "cost" isn't fixed, it varies with difficulty, and difficulty reacts mostly to three things: electricity costs, technical progress (Moore's Law), but mostly the Bitcoin price itself. Thus there is some circular logic in the argument that Bitcoin has value because it has a production cost. Because the production cost does also depend on price ...

In addition, NFTs have also a (small) production cost if we follow that theory: transaction fees. Of course the idea of NFT investors is that NFTs should yield a profit. But for the Bitcoin miners, actually that's the same; they often hold some BTC in reserve and speculate with a higher price, and above all those who mined early, before the emergence of the big "mining industry" (let's say pre-2015) in many cases held all of them for later. So according to this price theory, Bitcoin and NFTs aren't that different.

But I actually agree that Bitcoin has a much clearer intrinsic value than NFTs.

In my opinion, Bitcoin's value is described relatively well by the "social network theory", i.e. the more people use it as a payment network, the more value it accrues. Bitcoin encompasses also the blockchain, i.e. the infrastructure to transact. NFTs do not really support this infrastructure, and their social network is much more limited.

Bitcoin has a production cost! You need to invest in an expensive mining right to be able to mine it. Also there's a recurring cost of electricity and colling. So when an asset has a production cost, it will have value. Because a miner is not going to give away Bitcoins for free.

NFTs do not have any production cost. It can be created for free and can be listed for free. No value at all whatsoever.

Investors' pursuit of short-term profits rather than the real value of the projects caused unsustainable price increases in the market.
When prices started to fall with the bubble effect, there was a decrease in volumes.
Because NFTs were sold at prices that had no value and none of them had functionality. Perhaps in the future, the perception of NFTs may change and reshape.

To answer your question, most NFTs really had no value and survived only on hypes and when the hype finally died down, it died with them.

I've been looking at Magic eden for a while tho. I really did see it on the pre-trade counter when I was searching for some available coins for pre-trade.

Official listing is actually today on Bitget tho.

To many good opinion been posted here and those are actually good reasons why NFT hype dropped a lot at current date.

Also I think many people now already done with those scams happening in that scene that's why there's less discussion about this and people is showing lack of interest on new NFT projects around.

Lastly I will not recommend people to invest now on NFT since all of them becoming a shit hole now just like other scams around.

Token hype in general is a temporary thing simply because all tokens under any name are completely useless. Since they don't offer any utility in the real world (apart from being something people bet on), they don't have any long term potential. As they get dumped, people abandon the scene entirely therefore the hype ends and tokens start dumping.

I don't think it has ended completely though. When the bitcoin bull market starts moving faster and bigger (like mid 2017) we will see a lot of newbies come into the market which will be potential victims for altcoins scammers who will create a new "brand":

This is the one, NFT's have absolutely nothing at all, and that's why I think we should consider how things could change and we should definitely consider how wasteful that period was and how people just freely gave money away for no return. Makes absolutely no sense why they actually believed that some ape on some digital screen would worth hundreds of thousands of dollars.

I mean it was obvious from the start and yet they still  believed in it. And the worst explanation I got was "bitcoin normally worths nothing neither, we make it worth something", without realizing, bitcoins are all the same, we all have same bitcoin, the idea of a unique screenshot or image being worth a lot was different and they didn't even realize that.

Because NFT is a hoax and doesn't provide any real value for money - that's why!

I can sit with my laptop and can create thousands of images of a repist looking monkey using Adobe illustrator and then flood the market using Polygon chain for free. What value it will provide to the buyer?

It's a hoax and nothing else! People seem to have realized it finally!

What do you expect from NFT that is criminally founded, alot of money laundering cases around NFTs which to me is very easy to get through with by the bad guy's to concealed their stolen funds, so the atmosphere around NFT is quite unsecured for both investors and the government at Large, and NFT is build on hype's just like memecions and the like of them, so for sure, their popularity will be limited to time when the hype is still very loaud and hot, but right now, no real investors will consider investing in NFTs because of the lack of sustainable ecosystem and lack of real time user case for NFTs and majority of the new NFTs lately are all scam like, so the motivation of investors have died down at the moment.

Currently, memecions is the hype of the moment, just as NFTs hard their time in the past, memecions projects have taken over the scene and their also should be allowed to rain untill the fade out in the future, so for now let NFTs become silent and we move, nothing that involves so.much fraud can leave long so let NFT die it natural dead.

One thing I always thought to be hilarious is that in most cases, people were actually buying a link to some resource on a website, not the resource itself (e.g. an image). This has all sorts of issues, for example, when the website/company gets down or even changes the website structure, then your NFT becomes worthless.

While that's a bit different since we have solutions like inscriptions, uniqueness is never guaranteed. Even if you are the first person buying a certain inscription, then that could be simply a copy of art from some non-blockchain resource.

The real issue is, thus: NFTs only work if there is some entity guaranteeing its uniqueness and that associated features (e.g. in a game) will work. But: Can't these entities simply sell the "NFTs" on their website? So in most cases it's a typical example for "you don't need a blockchain for it".

Well I think there was alot of hype around the NFTs when they did just become new. There was a lot of celebrities that was buying the NFTs and I do think it made them more interesting for people to own them.
I do remember people was paying Millions of dollars for these digital pictures. I did never think it was worth the investment. For me it was better to just buy Bitcoin and hodl. I only did buy 1 nft but it was not for alot of money and now it is not worth anything. 
https://www.cmcmarkets.com/en-gb/explore/celebrity-nft-index

The decline in hype on NFT is real, everyone used to talk about it, but now it seems to be slowly fading. Maybe because of the new hype like meme tokens or new categories of altcoins. I have my own view on why the hype on NFT is decreasing, it is due to 3 basic things.

1. NFT have no real use, they are just limited edition images.
2. Challenges on the legal side.
3. NFT stand for short term hype over long term vision.

The three things I mentioned above are the main problems that NFT should solve, when those three problems can be solved, I think the hype for NFT could last longer & be more sustainable.

currently some NFT started to have some traction again after announcement of pudgy penguin airdrop which promises to distribute some good portion of the token to other community as well.
trading volume on certain NFT that's predicted to get some reward from PENGU is increasing, but I don't know how long it will last, NFT in general, aren't that great anymore in term of overall activity, but that's what make it better, NFT finally find its real genuine use instead of becoming another meme 2.0 that's all about pump and dump.

most of NFT utility right now tightly tied with identification or some sort, mainly repurposed for airdrop and authentication.

It's just a cyclic matter that every trend that becomes popular every bull run becomes weaker after a year or so. And that's why we've seen these NFTs and other trends that have come to the market to drop. Go back years more and you will also recognize how the ICO market became at the peak and then eventually have dropped because of too many scams and that's a normal scene to see that these hypes drop around. So, if these comes again on the upcoming days. I'd warn people to study more about the project that you're looking at that produces that NFTs. That's just some friendly reminder.

The hype isn't like 2021 but we can't deny the fact that NFTs have been doing well lately. As a matter of fact, the whole market has been parabolic and some of those capital has found its way to NFTs. If I'm not mistaken, even Bored apes have seen a 50-100% price growth in the last 2 months alone. Not just bored apes. Others as well.

I don't think we'll get the kind of hype we got in 2021 but it's still something. I personally don't like nfts because of their illiquid nature. For instance, I have gaming nfts on ronin that I've been trying to sell for a month.

Only people that are new in the crypto space will think the hype isn’t going to die down. In the crypto space, everything is seasonal, and NFT season has passed. Around 2021, NFTs were just hyped during that time, and the hype has died down. I will say 2021 was just the season for NFTs, and lots of people took advantage of it, people made lots of money during that period, and now nobody is talking about NFTs again. All those NFTs don't have any use case, just the same way meme coins are having hype currently, it’s just temporary, it’s going to die down. Scammers took advantage of the NFT hype to scam lots of people.

The hype for most NFTs with no use cases is over. They were used for standard pump-n-dump stuff. They are useless digital assets that they raise the price to sell to the next sucker. The last one to buy loses. This kind of craziness happens in different things every cycle. With millions of people trading for a quick buck hoping to make big money, the ponzis in the financial markets never end, they just change their form.

Because every bull run and hype needs a correction, and higher that bull run is, more radical will the correction be. And NFTs got way too high too fast. They weren't as much liquid as altcoins, so one could get stuck with those.

They were also less understood then altcoins, so people sold all kind of snake oil with them, just like with blockchain solving everything, suddenly it was nfts solving proof of possession.

None of the real world financial adoption came true. Turns out that owning a token isn't a legally binding contract, so none of the talk about tokenized stocks and shares made sense. People only tokenized synthetics, and those were problematic.

People had also a short memory. There was a mycelium ico back in 2016, where they sold shares as "colored coins", which were precursor to NFTs. Soon after it turned out that's not something you can legally do. But somehow no-one talked about that. NFTs were just creating too much money, so people shut their eyes to reality. No one cared about legal hurdles, or the fact that the concept was silly to the core. That doesn't mean it won't be rising again, because people love silly things.

But that market volume also contained money laundering, because suddenly that was easier then ever. Just create a collection and buy it from your left pocket with money from your right pocket. Every purchase were pseudonymous and people paid ridiculous sums from them already, so it wasn't far fetch to claim that someone bought a pixelated rock with $200K.

My personal opinion, this happened for 3 main reasons
1. Most NFT's projects do not have real functional utility but collective item
2. Unlike real life collective items, too many NFT is coming every year, make it less scalable and lessen its rarity.
3. The money laundering issue around it.

How the hype around NFTs has decreased massively since 2021 where it was at the peak of popularity and even celebs were buying NFTs left and right. Anyways, why am I bringing this up? I was going through the pre market for Magic Eden and I actually went to check the marketplace and it reminded me of how I used to browse Opensea everyday in 2021 lol

Well , if you're still a memecoin person you'll know of Magic Eden, you know it's popular for it's multi chain functionality and that enables it to make and receive payments in a flexible manner, so it makes 5thye whole market place user friendly. It's no wonder the premarket has decent volume, around half a mil in vol

What do you guys think was responsible for that drop?