The mania for non-fungible tokens (NFTs) reached a well-known all-time high in the hours leading up to the disastrous gas war for the Otherside Metaverse land sale.
But, after nearly a year of wild exponential growth, prevailing speculation and cultural attention, the market is long overdue for a respite — a dramatic hiatus, according to most prominent figures. It has now subsided and officially entered its first bearish cycle.
OpenSea statistics paint a bleak assessment of the market’s financial health, with reserve prices for some very popular collectibles more than halved since their peaks.
The famous Boring Ape Yacht Club has dropped from a peak floor price of 156 ether (ETH) in early May to 98.8 ETH at the time of writing. Likewise, CryptoPunks fell from 125 ETH on October 2 to the current 50 ETH.
Other Profile Picture Projects (PFP) such as RTFKT Studios’ CloneX, Azuki, Doodles and even virtual world lands The Sandbox and Decentraland have suffered a similar fate.
The much-respected world of cool cats and women — classed as a blue-chip just six months ago for its innovative intellectual property and community spirit — has seen a sharp drop in the value of top collectibles.
However, the NFT market is by no means alone in this trend. This week, macroeconomic factors such as inflation, falling stocks and poor consumer affordability have been compounded in the crypto industry by the devastating collateral damage of the Terra stablecoin crisis.
However, despite WAGMI’s hypocritical social climate and cultural acknowledgment, the underlying sentiment among seasoned artists, founders and space advocates is that the bear market will provide an opportunity for reflection and rebuilding.
Beyond that, founders and core holders welcome expanding the conversation from greedy-obsessed floor prices to more conscious topics like utility, social impact, and IRL interactions.
As in the 2017-18 crypto winter, humility, resilience and determination are the core pillars needed to nurture a revival.
To get a comprehensive look at how the NFT project has maintained and continues to deliver on its founding philosophy, community values, and roadmap vision, Cointelegraph’s tech reporter Tom Farren spoke with some of the expert thought leaders in the field.
Passionate NFT spokesperson and newly appointed Head of Partnerships at Joyn.xyz, Aleksandra Artamonovskaja, speaks candidly about the importance of recognizing the opportunities that arise in bearish cycles, sharing her belief that now is “the best time to adjust your vision.” good time”, and said:
“When the market is hot, it’s hard to focus because there’s so much noise. This downturn acts as a clean-up mechanism for all the speculation that’s going on. It will now be clearer, especially for investors, which projects are It’s constantly building and sticking to its values. It’s a good test that they’re going to stick with it in any situation.”
No matter what, we keep going
Thanks for having me @OFFFest pic.twitter.com/SDNoDvzJ49
— Aleksandra Art (@aljaparis) May 11, 2022
On the topic of 1/1 artists, Artamonovskaja reflected that “two years ago, artists who sold 1/1 didn’t have that much support”, but now “it’s a completely different situation because of NFT galleries, markets, artist residencies, exhibitions, competitions, etc.”
“It’s not perfect,” she said, “but it’s an opportunity for artists to understand how they can engage, not just with buyers, but in the ecosystem itself,” before concluding, “Co-creation is A very good direction to explore.”
Related: NFTs Could Mark Art Gallery Revival
Recognized as one of the most progressive organizations supporting the leap into the decentralization space, TIME has announced a series of plans for crypto adoption throughout 2021, including adding Bitcoin (BTC) to its balance sheet and giving it 18 Monthly digital subscription option accepts crypto payments in partnership with Crypto.com.
In March of this year, the 99-year-old history magazine published a revealing interview with Ethereum co-founder Vitalik Buterin as well as Memorial Genesis NFT Magazine.
TimePieces, TIME’s Web3 creative subsidiary, also embraces the culture and spirit of the space, launching a number of artistically diverse and culturally relevant NFT series such as Slices of TIME and Build a Better Future.
TIME President Keith Grossman shared his expectations for the future prospects of NFT projects, based on their intentions – currency or value orientation – assessing that many “greed-based communities will not survive in the next year, because the focus of these communities is mainly fast, Monetary rewards – not a larger cause or belief system.”
According to Grossman, “value-based communities” have the greatest capacity to grow because “their members are focused on building together something greater than any individual or immediate financial reward and share a shared belief that values will Create value over time.”
Later in the conversation, he publicly revealed that TimePieces will focus on growth areas that seek to develop throughout the bearish cycle in order to best serve their community and the wider ecosystem, stating:
“TIMEPieces will focus its energy on continuing to invest in building out its Web3 business and continue to lean towards our brand, providing powerful programming and access to its community members. Our view will not change due to market conditions: we will Growing our brand within this space – not 100 minutes, weeks or months. Years!”
This is how @KeithGrossman flew across the ocean in honor of @timepieces and his curation @1 and the only #NFTLiverpool world’s largest and longest NFT exhibition! He put in real hard work and ⏰ huge credit to know each of us ✨ always gr8ful4 this ⏰ pic.twitter.com/J09L8RmUcp
— ARTJEDIᵍᵐ SuperRare + Visual Arts Ambassador KO (@ARTJEDI1) May 14, 2022
TimePieces is actively recruiting for five positions, including Head of Collector Relations and Manager with Metaverse experience – all of which are closely related to applicants within the TIMEPieces community.
Related: NFT Industry Expected to Move About $800 Billion Over Next 2 Years: Report
Acknowledging current market dynamics, coupled with the relatively high risk of NFTs in portfolios, Rarible’s co-founder and chief strategy officer, Alex Salnikov, sees “collections of NFTs purchased for user enjoyment or artistic appeal, as well as offering valuable will remain relatively stable.”
According to DappRadar, Rarible ranked 14th with $2.81 million in transaction volume in 30 days. Speaking about helping their communities through what may be uncertain times for many, Salnikov said:
“We pride ourselves on being a community-focused marketplace, and during a bear market, upholding this principle has never been more important. Our team places a special emphasis on supporting community-focused NFT collections.”
Salnikov cited their work with Solana’s Degenerate Ape Academy and Meta Angels to develop and launch custom marketplaces for their ecosystem, noting that this supports their overall ambition that “a larger percentage of fees will be earned on marketplaces” Treasurys, or DAOs, for projects generally have more flexibility than larger, more centralized platforms.”