Despite the crash - do NFTs have a future?

The exaggerated hype about crypto art and virtual assets may be over, but the basic idea is still relevant.

The promising future project NFT suffered a bitter setback after the massive bladder formation. Digital art on blockchain has currently proven to be what critics feared from the start: a bladder without a substance.

Blockchain token prices have plummeted by 90 percent. But the underlying idea remains unaffordable for investors. This was also recently summarized by stock market reporter Anne Schwedt in the Pioneer Investment Briefing .

The technology behind NFTs still offers countless possibilities. The idea of ​​selling and disposing of unique digital objects via the blockchain has the potential to revolutionize many industries.

Artworks, music, virtual real estate—the applications are virtually endless. Even though the market may have temporarily saturated and been brought back down to earth, NFT technology continues to demonstrate its innovative power and future viability.

Despite the current setback, experts therefore remain optimistic about the future of NFTS. ”

While prices have plummeted, the underlying principles and use cases of blockchain-based token technology are becoming increasingly clear. Creative minds and companies continue to recognize the potential of creating and trading unique digital goods via NFTs. 

Despite turbulent times, the NFT technology remains firmly on the radar of investors and creative people alike.

Crypto, Bitcoin, NFT – what lies behind these blockchain trends?

For those who haven't been following the crypto hype, let's backtrack a bit and explain the basic terms and functions of these concepts.

Cryptocurrencies like Bitcoin and their digital assets, such as NFTs , are now widely used terms, yet often misunderstood. They are all based on blockchain technology, a decentralized database composed of various blocks of information.

These data blocks are connected by cryptographic procedures. Digital currencies that build on this innovative technology have been on the market since 2009 and were able to achieve a total value of over $ 2 trillion for the first time in April 2021.

The Bitcoin is undoubtedly the best known and most widespread cryptocurrency.

In contrast to conventional physical currencies such as paper money or coins, cryptocurrencies exist purely digitally and regardless of institutions and governments. The basic idea behind cryptocurrencies is a decentralized control in which everyone can participate in the production and management of coins.

The value of cryptocurrencies such as Bitcoin is increasingly compared to that of gold, since both are considered more reserve systems than direct currencies. Their value is based on its rarity, since both the promotion of gold and the number of bitcoins are limited. “mined” in a blockchain , which is considered to be the creation of new bitcoins.

Simple currency transactions with Bitcoin are saved in the blockchain, which thus serves as a public financial transaction database. Bitcoins can be traded without any problems because their value remains stable. In contrast to Bitcoin, other cryptocurrencies such as Ethereum, Neo, Wax or Tron can also be integrated into the blockchain. These enable the creation of entries that are unchangeable.

One example of unique assets is NFTs (non-fungible tokens) . These digital assets, or crypto art, , a digital collage by artist Mike "Beeple" was auctioned at Christie's for $69 million.

NFTS can be included and traded drawings, digital works of art, video clips, gifs or even tweets.

Expert assessments of BTC-Echo and NFT Floor Price

Despite the downward trend of the last two years, investors are still investing considerable amounts of money in pixel art .

The most valuable Ethereum NFT collections

By far the NFT art collections based on Ethereum are the highest rated crypto art. The top 3 alone has still had a market capitalization of over 1 billion USD .

If you look at the charts on NFT Price Floor, then something like soil formation can be seen in the value developments . This could make crypto art interesting for investors.

1st place: cryptopunks

Cryptopunks are digital works of art in the form of NFTS, which were launched by Larva Labs and presented in June 2017. These virtual objects include 10,000 copies that exist on the Ethereum Blockchain. As a pioneering PFP/avatar project, the cryptopunks are part of the total collection of Yuga Labs.

The price limit of cryptopunks is 21.80 ETH (approx. 56,000 USD), with a 24-hour trading volume of 120.49 ETH and 5 sales. The project leads the ranking with an NFT price limit of 218,000 ETH (market capitalization: approx. $ 577 million) and a maximum offer of 10,000 units.

2nd place: Bored Ape Yacht Club

The Bored Ape Yacht Club was launched by Yuga Labs and released in April 2021. It is an exclusive collection of 10,000 unique NFTS that exist on the Ethereum Blockchain. This PFP/Avatar collection blends harmoniously into the overall portfolio of Yuga Labs.

The current price limit of the Bored Ape Yacht Club is 9.83 ETH (approx. 25,000 USD), the 24-hour trading volume is 107.55 ETH with 11 sales. The project occupies second place in the NFT price limits with a lower limit of 98.3 ETH (market capitalization: approx. 254 million USD) . There is a maximum offer of 10,000 copies.

3rd place: Pudgy Penguins

The Pudgy Penguins are a unique series of NFT works of art created by The Igloo Company and unveiled in July 2021. Each of the 8,888 digital objects exists on the Ethereum Blockchain. This PFP/Avatar project enriches the extensive collection of The Igloo Company.

The current price limit for Pudgy Penguins is 8.37 ETH (approx. 21,500 USD), with a 24-hour trading volume of 115.63 ETH and 14 sales. The project currently occupies third place in the NFT price limits with a lower limit of 74.4 ETH (market capitalization: approx. 192 million USD) . The maximum offer is 8,888 pieces.

The most valuable Bitcoin NFT collections

With the runes and ordinal protocol, non-fungable tokens (NFTS) can be represented on Bitcoin for the first time. The three most important NFT collections on Bitcoin currently have a market capitalization of over $ 180 million.

BTC-Echo had a conversation with the creator of the NFT platform NFT Floor Price about the value of Bitcoin NFTS, the importance of Ethereum and upcoming NFT trends.

1st place: nodemonkes

NodeMonkes collection , consisting of 10,000 unique NFTs, fetches prices of up to 0.13 BTC (approximately $8,000) each. With a current market capitalization of 1,340 BTC ($80.1 million), NodeMonkes is the most prominent Ordinals project on the market and is one of the oldest of its kind, having been operating since February 2023.

The data from NFT Price Floor underline the importance and popularity of this NTF collection.

2nd place: Runestone

Runestone has a trading volume of 1.62 BTC, which is higher than with Nodemonkes. The market capitalization is 896 BTC and is therefore lower than that of the first place. The 112,384 BTC NFTS from Runestone are impressively detailed: these are 3D models of black gemstones that can be viewed on platforms such as Ord.io.

The mining of this NFTS is expensive-the most expensive runstone comprises 3.968 MB and the price for the mining is $ 1.09 ($ 75,000).

3rd place: Quantum Cats

Quantum Cats is a digital work of art that was presented to the public on January 8, 2024. It consists of 3,333 unique elements that exist on the Bitcoin blockchain. This creation is categorized as a PFP/avatar project and addresses art lovers and crypto enthusiasts alike.

Despite the low artistic value, the cats achieve stately prices, with a current value of 0.26 BTC (approx. $ 15,800) for the collection.

What does Nico Lallement from NFT Floor Price see the future of NFT art?

The cryptocurrency market , like other assets, depends heavily on market cycles, which are determined by macroeconomic and internal events within the market.

The NFT market does not remain unaffected by these cycles, according to Lallement.

Ethereum is currently receiving a lot of attention due to the approval of Ethereum ETFs in the US. Once this hype subsides, more capital is expected to flow into Bitcoin projects again, as the entrepreneur emphasized to BTC-ECHO.

The future of Bitcoin NFTS will probably be determined by the increasing interest in high-quality collections, in particular generative art collections and AI art. In addition, other uses such as games and autonomous worlds could also find a place on Bitcoin. ”

So Nico Lallement by NFT Floor Price compared to BTC-Echo.

What about Bitcoin, Ethereum & Co.?

Since most NFT collections are either based on Ethereum on Bitcoin, their performance naturally also depends on the value of the cryptocurrencies.

In the constantly changing world of crypto investments, it is crucial to master the latest and most sophisticated trade strategies. Unfortunately, many retailers have no access to high -quality and reliable information in this area.

Investors are gaining experiences with providers like Immediate Code that help them make informed decisions. These service providers aim to fill this information gap by offering introductions and training in trading techniques. They also connect digital currency traders with world-class resources to enhance their market analysis skills.

After a strong downward trend in the past week, the courses of cryptocurrencies were able to start speed again at the beginning of this week. Despite this relaxation, the Bitcoin is still clearly removed from its previous record high. The analysis of the chart technology also gives little reason to euphoria and could rather unsettle investors.

On Tuesday night, the courses of cryptocurrencies recovered after a sale on the stock exchanges. The Bitcoin rose by $ 55,500, while Ether increased by 6.3 percent and Solana by 15.5 percent. Investors use the sunken courses as an entry option, although the courses on a week's perspective were still in the minus.

Today, the Bitcoin price reached its weekly high of $58,500, thanks to good unemployment figures in the US.

Influence of global political uncertainty

• The increasing political uncertainty, especially in connection with the upcoming elections in the USA, creates conditions for speculative investments in cryptocurrencies as "safe ports".
• The mood on the cryptocurrency market traditionally reacts to political changes, which makes this sector particularly susceptible to international news and political statements of influential personalities.

These factors together could continue to increase the Bitcoin price and underline the connection between political events and the cryptocurrency markets. The importance of a careful analysis of political news must not be underestimated because they play a key role in the design of trends on the global financial market.

The influence of politics on cryptocurrencies

Political events in the United States have a long history of influence on the financial markets, including cryptocurrencies. The connection between political instability and fluctuations in the market for digital assets becomes clear, particularly in key moments of the political calendar. This can be illustrated in detail based on the following aspects:

Direct reaction to events

An example is the reaction to the attack to former President Donald Trump, which led to an immediate increase in activity on the cryptocurrency market.

The labor market numbers, the reporting season of the large corporations and the increasing tensions in the Middle East also have an impact on the courses of cryptocurrencies.

Such events lead to increased volatility, since investors and dealers try to predict possible changes in economic policy.

Long -term effects on market tendencies

Analysts indicate that political events can have long -term effects on the cryptoma markets, especially in times before the elections.

Political uncertainty often leads to increased interest in cryptocurrencies as alternative investments, which can support or even increase their prices over longer periods.

The role of political uncertainty

• In times of political crises or significant election campaigns, interest in cryptocurrencies is increasing because investors are looking for opportunities to secure risks.
• Uncertainty about political events and possible changes in legislation can promote the active use of cryptocurrencies as "safe ports".

These aspects underline the complex relationships between politics and business, especially in the context of a globalized financial market, on which cryptocurrencies play an increasingly important role.

Forecasts for the future of Bitcoin

Predictions regarding the outcome of the upcoming elections, especially a victory for Donald Trump, play a significant role in changing market dynamics. Many platforms showed that the probability of a Trump victory had increased significantly after the assassination attempt.

Since the nomination of Kamala Harris, the paper has turned again. A victory of the democrat now seems more and more likely.

The sudden rise in the Bitcoin price following the assassination attempt on Donald Trump and its crash last Monday following bad economic news underscore the sensitivity and volatility of the crypto market.

The prospects for a further increase in Bitcoin outweigh.  systems in crypto values ​​remain