NFT sales records have been continuously broken.
Although the recent stars in the NFT market are Art Blocks and “Generation Art”, it seems that all NFT projects have ushered in an explosion. Almost all NFTs are in an up-only mode, and there is no sign of stopping.
For example, this Fidenza (#313) just sold 1,000 ETH (worth about $3.3 million)?
The floor price of Ringers is currently about 100 ETH, which is about 4 times higher than last week.
In order to better see the market situation, let’s take a look at the historical price chart of Ringers:
Chromie Squiggles (actually just a rainbow curve), its average sales in the past 30 days have risen from 2.5 ETH to 10 ETH.
At the same time, the purchase demand for NFT incarnation items such as Cryptopunks, Bored Apes, and Pudgy Penguins has increased to a new level.
The floor price of Cryptopunk has reached 70 ETH, which is unprecedented.
The same goes for Bored Apes:
These charts all depict a similar story, as our friend Cooper put it:
“We are in a cultural bull market.”
Visa bought a Cryptopunk. What does this mean?
Today, payment company Visa announced that they purchased a Cryptopunk (in the Ethernet Square settlement payments on).
This is a weird timeline, isn’t it?
In last week’s “Market Monday” article, I wrote that “Going to the’mainstream’ is not what we think” and this is what is happening. It is a strange irony that a payment company chose to purchase NFT as its first attempt to participate in the Ethereum ecosystem.
Indeed, Visa has announced that it will settle USDC on Ethereum . Now, from a completely different perspective, Visa is also legitimizing the nascent world of NFT.
Therefore, Visa is a payment company that aims to settle a transaction volume of $3.1 trillion in this quarter, and it has settled stablecoin payments on Ethereum, then the company bought 50 ETH, and then they used these ETH to buy one ( A little ugly?) CryptoPunk.
I said it before, but I will say it again: as Ethereum and NFTs become more mainstream, we will reduce the discussion about “how much are these NFTs worth?” Instead, there will be simpler statements, such as “Look at the NFT I just bought!”.
This is what we are doing now.
We have entered the age of “social trading pictures”…and they are using ETH to do this.
Then NFT… is the second ICO frenzy?
The term “ICO” has been heavily polluted, and this is for good reason. The whole phenomenon is based on impossible ambitions and false promises, and many people have been burned by it.
Therefore, when I proposed that NFT is the next ICO, I am not suggesting that we take all the baggage of this term. This is not to say that NFT fanatics will have no luggage, but it will be different from what we have seen in history.
If you want to survive in the crypto field, I think the book “The Devil Takes the Laggards: A History of Financial Speculation” is very worthy of your reading.
The two important points I want to make are:
- Financial bubbles are produced entirely on the psychosocial level of human beings;
- Humans can trade almost anything;
The Crypto economic revolution is a scarcity revolution. We completely redesigned scarcity, what it means, how it came about, and what we did about it.
“The scarcity revolution is at the core of crypto. FOMO is not just a natural reaction, it is an engineering reaction.”
This is why crypto is so prone to bubbles of all types and sizes.
We invented scarcity on the Internet, which will inevitably trigger various types of financial bubbles. And “pictures on the Internet” is almost as old as the Internet itself.
Pictures meet scarcity. Scarcity, meet pictures.
Let the craze begin.
Another key point of this book is to ignore any kind of fundamentals or rationality when it comes to asset prices.
This is great, because NFT really has no fundamentals! This also explains why they are significantly different from ICO mania, which is a series of projects that promise to provide a new financial paradigm with earth-shattering new fundamentals.
NFT did not make such a promise, in fact they are just pictures. The traction of these things depends entirely on the imitation game.
“I like this. Will anyone else like it? I think so. Then I’ll buy it.”
If you think you are good at imitating games, good luck!
The revival of human culture
Due to the lack of any financial foundation, the NFT market can only be evaluated by the image they represent. If we really enter the frenzy of NFT, it will inject a lot of money into image speculation.
On the other side, what will happen to the quality of NFT images?
After trillions of dollars have been invested in competing artists and art projects, what will be the quality of digital art? New innovations, such as the generative art brought to us by Art Blocks, can completely change the paradigm of digital art.
Since these things are based on the taste of art rather than the financial basis of the market, we can only imagine that the art emerging from the other side of the frenzy will be very tasteful.
I really like art, so I would love to see what human beings can produce at the forefront of art speculation mania! Hope we can unlock new methods of personal and community expression, as well as more powerful ways to financially reward art!
The most comfortable way: hold ETH, and then be a bystander
It is very difficult to speculate on NFT, most of the time I am in an unclear situation.
You should not be forced to participate because everyone else is doing this. We can’t guarantee that any kind of enthusiasm will unfold, and this article itself may also mark that NFT has reached the top.
For those who remain vigilant, this is a good time to remember that “everything that happens on Ethereum will flow back to Ethereum.”
Have a large group of ETH whales and Gen Z gambling on JPEG?
Well, if you are an ETH holder, especially as an ETH pledger, you will be exposed to all of this, especially when a company like Visa legalizes ETH as an asset and uses it as funds to purchase NFTs. In the final analysis, ETH should be able to capture the massive speculative mania that is happening on Ethereum.
Any market frenzy will bring winners and losers, and winners win by taking money from losers.
If you are a risk aversion and want to make sure that you are still a winner, you can simply play the role of a “house” by holding ETH.
If NFT mania really develops into an ICO-scale market, you can expect ETH to keep pace with it.
Note: The original author is David Hoffman, the co-founder of bankless.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/floor-prices-are-soaring-when-will-visas-nft-craze-stop/
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