NFTs ARE CRASHING (do this now!)

Posted 2 years ago

by shakiez893

The NFT market is down pretty bad, much like crypto and stocks, but I believe the worst is yet to come. Yes, I think the NFT market could possibly crash in the next few months and there are a few reasons why.

Well as individual investors in the NFT market get more and more experienced in the space, they start to mature. They make smarter decisions, get more aggressive with taking profits, and are much less likely to FOMO into bad projects for fear of missing the train. When you have just a few million investors total in the space, it makes it a bit quicker for the whole market to mature after just a few months.

Well, what we saw in January was the absolute pico top of the NFT market history so far. It was completely unlike now, which has slower growth and a more mature market.

So let's look at January to see what caused that perfect storm of explosive volume, and then we can see what factors from that time lead me to believe we're in for a rough patch in the next few months.

One of the most critical factors in that perfect January storm is that the explosive inflow of new traders allowed the small amount of mature investors in January to dump their WL mints and NFT bags onto the new buyers in the space that were amped up on fear of missing out. In other words, the exit liquidity for potentially over inflated prices was abundant. This is why you saw things like HAPE BEAST have an 8eth floor right after mint, to what is now a 0.65 eth floor. Literally 10x less valuable than it was if you bought within the first week of the mint. And that's just one example of hype, fomo, and naive traders pumping floor prices well beyond their reasonable value.


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#nft #NFTs #crypto

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