The feverish euphoria of non-fungible tokens (NFTs) reached its proverbial heights in the hours leading up to the calamitous gas wars of the land sale of the Otherside metaverse.
But by most reputable accounts, after nearly a year of frenetic exponential growth, abundant speculation and cultural spotlight, the market has long been waiting for respite. A break from the typing drama. It has now calmed down and officially entered its inaugural down cycle.
Statistical data from OpenSea paints a sad picture of the financial fortunes of the market, with the price floors of some very popular collections having more than halved from the highs.
The prominent Bored Ape Yacht Club has risen from its floor price of 156 Ether (ETH) in early May to 98.8 ETH at the time of writing. Similarly, CryptoPunks went from 125 ETH on October 2 to its current value of 50 ETH.
Other Profile Picture Projects (PFPs) such as CloneX, Azuki, RTFKT Studios’ Doodles, and even metaverse lands The Sandbox and Decentraland have all suffered the same fate.
The highly revered Cool Cats and World of Women – which just six months ago were ranked among the blue chips for their innovative approach to intellectual property and community spirit – have seen the most drastic reductions in the value of best collections.
However, the NFT market is by no means alone in this trend. The macro factors of inflation, falling inventory and lack of consumer affordability have been compounded this week in the crypto industry by the devastating collateral damage of the Terra (LUNA) stablecoin crisis.
And yet, despite the mellow social atmosphere and cultural admission of WAGMI’s lies, the underlying sentiment among veteran artists, founders, and space advocates is that the bear market will provide an opportune moment for reflection. and rebuilding.
Along with this, founders and major holders welcome the moment to expand the conversation from greed-haunting price floors to more conscious topics such as utility, societal impact, and IRL interactions.
Just like in the 2017-18 crypto winter, humility, resilience, and determination are the essential pillars needed to cultivate a revival.
For a comprehensive look at how NFT projects can preserve and continue to realize their founding philosophy, community values and roadmap visions, Cointelegraph tech reporter Tom Farren spoke to a number of of expert opinion leaders in the space.
Aleksandra Artamonovskaja, passionate NFT spokesperson and newly appointed Head of Partnerships at Joyn, spoke candidly about the importance of recognizing the opportunities presented in down cycles, sharing her belief that now is the “perfect time to align your vision “, before declaring:
“When the market is hot, it’s hard to concentrate because there’s so much noise […] This [downturn] acted as a clearing mechanism for any speculation that takes place. It will now be clearer, especially for investors, which projects are continuously building and respecting their values. It’s a good test to show that they will persevere no matter what.
Despite everything, we keep moving forward
— Aleksandra Art (@aljaparis) May 11, 2022
On 1/1 artists, Artamonovskaja explained that “two years ago artists selling 1/1s didn’t have much support”, but now “it’s a completely different case because NFT galleries, markets, artist residencies, exhibitions, competitions, etc.”
“It’s not perfect,” she says, “but it’s an opportunity for artists to see how they can engage, not just with the buyer, but within the ecosystem itself.” , before concluding that “connection is a very good direction to explore.”
Related: NFTs Could Mark a Resurgence in Art Galleries
TIME Magazine, recognized as one of the most progressive organizations advocating the leap into the decentralized sphere, announced a wave of crypto adoption initiatives throughout 2021, including the addition of Bitcoin (BTC) to their balance sheet and accept crypto payments for their 18-month digital subscription option in partnership with Crypto.com.
In March this year, the 99-year-old landmark magazine published a revealing interview with Ethereum co-founder Vitalik Buterin alongside a commemorative issue of NFT magazine.
TimePieces, a Web3 creative subsidiary of TIME, has also embraced the culture and ethos of space, releasing a number of artistically diverse and culturally relevant NFT collections such as Slices of TIME and Build a Better Future, among others.
President of TIME Magazine, Keith Grossman shared his anticipations for the future prospects of NFT projects based on their intentions – monetary or value-driven, believing that many “greed-based communities [won’t] survive over the next year as the goal of these is primarily quick monetary return – not a larger cause or belief system. »
“Values-based communities” have the greatest ability to thrive according to Grossman because “their members are focused on building something greater than any individual or immediate economic return and share a belief common sense that values create value over time”.
Later in the conversation, he openly revealed the areas of growth that TimePieces will carefully seek to develop throughout the bearish cycle to better serve his community and the wider ecosystem, stating:
“TIMEPieces will focus its energy on continuing to invest in building its Web3 presence and continuing to leverage our brand to provide strong programming and access to members of its community. […] Our view will not change due to market conditions: we are evolving our brand in this space for the next 100 years – not 100 minutes, weeks or months. Years!”
it’s like that @KeithGrossman I flew over the ocean to honor @watches & its curated @ 1 & only #NFTLiverpool the largest and longest NFT exhibition in the world! he put in genuine effort and ⏰ getting to know each of us
huge honor✨ always gr8ful4 this⏰ pic.twitter.com/J09L8RmUcp
– ARTJEDIᵍᵐSuperRare + KO Visual Arts Ambassador (@ARTJEDI1) May 14, 2022
TimePieces is actively recruitment for five roles, including a Collector Relations Manager and a Manager with Metaverse experience – all of which come with a strong affinity for candidates within the TIMEPieces community.
Related: NFT Sector Expected to Move Around $800 Billion in Next 2 Years: Report
Acknowledging current market dynamics, coupled with the relatively high risk of NFTs in an investment portfolio, Rarible Co-Founder and Chief Strategy Officer Alex Salnikov said that “NFT collections that are purchased for the sake of user or artistic appeal, and which provide valuable utility, will remain relatively stable.
Rarible is the fourteenth market by volume traded over a 30-day period with $2.81 million according to data from DappRadar. Speaking about helping their community through what can be an uncertain time for many, Salnikov said:
“We pride ourselves on being a community-centric marketplace, and never has this been more important to uphold than during a bear market. Our team places a special emphasis on supporting community-centric NFT collections .
Citing their work with Solana-based Degenerate Ape Academy, and meta angels to develop and launch marketplaces tailored to their ecosystems, Salnikov noted that this supports their overall ambitions to “dedicate a greater proportion of fees earned from marketplaces to project treasury or DAO, and to have a greater great overall flexibility compared to larger and more centralized platforms. .”
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