NFTs Have Not Been A Good Store Of Value In ETH Or USD
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Although non-fungible tokens are a favorite pastime among speculators, these assets do not hold their value too well. Especially in a bear market, both the ETH and USD value of everything plummets like a brick. Some may argue there are good bargains to pick up today, although the overall momentum says otherwise.
NFTs Can’t Retain USD Value Too Well
Prices of everything get inflated heavily when cryptocurrencies are bullish. NFTs are a good example of that concept, as some collections reached astronomical price floors in 2021 and early 2022. Most people knew such values would not be sustainable for long, yet speculators and investors kept pouring money into these assets. Most of them now face a gaping hole in their wallets, with no real improvement in sight.
Like most people, one must first look at the NFT values in US Dollars. It is not a popular method, but rest assured the ETH prices are not much better. Even the top-tier collections have moved down significantly in value, confirming NFTs are far worse investments than cryptocurrency for most people. Even so, it can be a lucrative investment under optimal market conditions. For everything else, clearly not so much.
All time highs vs current prices in USD
CryptoPunks : 440K
108K
BAYC : 435K
MAYC : 130K
Moonbirds : 117K
Azuki : 115K
Clone X : 88K
Vee Friends : 75K
Doodles : 60K
Cool Cats : 57K
WOW : 50K
GCG : 29K— Renegademaster.eth
(@renegademasterr) August 21, 2022
The top collections – CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, Moonbirds, Azuki, and Clone X – all saw their prices decline by roughly 80% or more compared to the all-time high. CryptoPunks and BAYC are the only collections remaining above $100,000, whereas MAYC, Moonbirds, Azuki, and Clone X range from $10,000 to $20,000. These collections were, at their peak, worth at least $88,000 per NFT.
One may argue the falling crypto prices have pushed down NFT values. That is a correct assessment, although most of these collections have run their course once the novelty wore off. Profile picture collections can only go so far. BAYC and MAYC were ‘saved” by the launch of ApeCoin and Otherdeed. CryptoPunks have that undisputable “OG” status, but everything else will need to figure out some utility sooner rather than later.
ETH Price Floors Crater Too
Most investors and speculators prefer not to keep their crypto liquidity in NFTs during a bear market. That is evident when looking at current versus all-time high price floors. Every collection saw its floor slashed by 50% or more, and there is no immediate recovery either. Many would have loved to pick up a BAYC or CryptoPunk for under 70 ETH months ago, yet few are willing to pay that price today.
Now in ETH
CryptoPunks : 125
BAYC : 150
MAYC : 40
Moonbirds : 35
Azuki : 33
Clone X : 21
VeeFriends : 20
Doodles : 20
Cool Cats : 19
WOW : 14
GCG : 11— Renegademaster.eth
Things do not get better for other collections like VeeFriends, Doodles, Cool Cats, World of Women, etc. Those price floors look abysmal compared to their all-time highs, and converting it to USD makes it even more painful. Regardless of how one wants to look at it, NFTs are not a great investment. That situation can easily change once crypto goes full-throttle bull mode. Unfortunately, such an outcome seems rather unlikely for 2022.
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