State of the NFT Market: May 2022
We are definitely in a bear when you think about the current state of the market and the capitulation that has occurred across the majority of in that teas and cryptocurrencies it’s easy to get discouraged. On a macro scale it’s impossible to predict what’s going to happen and that’s why we try to avoid offering any long-term advice and provide disclaimers whenever possible but the nft market in particular has gone through a very similar cycle last April and May starting with Nifty Gateway and then the pull back with crypto as we entered the summer months of 2021.
This is good and bad as many projects are getting absolutely nuked. We’ve talked about this in the past and our belief that even a well intentioned project can’t maintain momentum over a Period of time they are likely to fail. Unfortunately we collectors are incredibly fickle and the current state of the end of teamwork revolves around quick flipping, bag pumping and getting in and out of projects as quickly as possible. This current decline was inevitable and expected but it still hurts for a lot of project owners and collectors alike. We expect the frustrations of the community to continue to turn more toxic over the short-term and the wagm I mentality is definitely going away for the short-term.
All is not lost… there is still a lot of positive momentum in the market if you look at the entirety of the NFC market last May end of the daily volume of Open Sea we have already flown way past that. we have always recommended only buying and supporting projects you love, have utility and enjoy the art even if the project were to go to 0. Right now is a tremendous opportunity to find those great projects. Many of the top projects in the space are experiencing significant pullback anywhere from 25 to 75% which means that if these projects are successful there are definite opportunities for massive upside. If you combine this with the massive pull back ETH is currently experiencing, the value on certain projects is better than ever.
The biggest red flag that seems to be drawing the ire of the community is Azuki. it was revealed that the project leader has three previous and IT projects that were sudo rug pulls for the community. at one point azuki fell all the way to 10 aetherium. It has bounced back 2/16 but unless the roadmap can deliver on some massive utility this appears to be a pretty high risk entry point.
The other side land is also the big loser with the floor down to 3 eta o seth and a 70% decline Over the last seven days. Bay see is down almost 50% And other projects continued to fall fast. Interestingly, doodles and moon Birds appear to be weathering the storm fairly well.
