In the past year, the value of many popular NFTs has plummeted, mirroring the decline in the value of metaverse assets in 2023.
Projects such as Doodles, Invisible Friends, Moonbirds, and Goblintown have seen their values drop by up to 95%. Even blue-chip NFT collections have recorded an average decline of over 40%. According to data from NFTGo, the Blue Chip Index has fallen from its peak of 12,394 ETH in July 2022 to 7,446 ETH.
However, investors in NFTs seem undeterred by the ongoing value decline. In the past year, holders of blue-chip NFTs have seen their investments increase by over 90%. The number of sellers has increased by 32% during this period, while the number of buyers has decreased by 30%.
Why is the number of NFT holders still increasing?
While there are forecasts indicating a deep and prolonged decline in the NFT market, some investors believe that now is an ideal time to buy, as they anticipate a recovery in 2025-2026.
Many investors believe that the NFT frenzy witnessed in 2021 will make a comeback. Therefore, the current price dip may be seen as a potential opportunity.
Furthermore, the NFT ecosystem continues to attract new investors despite financial difficulties. Even cryptocurrency critic Peter Schiff has used Ordinals to create NFTs on the Bitcoin blockchain.
Regardless of the significant decline in the value of top NFT collections, their potential in the future cannot be denied. Use cases for NFTs extend beyond artwork and gaming, with various industries incorporating NFTs, including music.
Governments have started exploring blockchain technology for more efficient record-keeping. Many events are now utilizing NFTs as tickets. The digitization of assets, along with NFTs, still has a long way to go in the future of the digital realm.