As the cryptocurrency market boomed during the beginning of the year and subsequently, a newer segment also rose to prominence – NFTs. Non-fungible tokens cannot be interchanged for something else – unlike fungible assets like money. NFTs have exploded alongside the cryptocurrency market as they have become a medium for collectibles and artworks. NFTs represent collectables or artworks and often sell in as high as millions of dollars but the buyer will not receive any tangible asset; instead, they will receive a digital token representing the said asset. In essence, NFTs are digital certificates of ownership.
While the cryptocurrency market crashed, the NFT market was thriving, a report by DappRadar revealed. The decentralized app marketplace reported that NFT sales have risen nearly 300% from January to May. The sales averaged at 21,815 per day in January while the sales stand at 82,373 in May. The sales began surging even more as the cryptocurrency market crashed.
However, the value of sales have taken a hit amidst the market crash. During the beginning of May, daily sales averaged at a value of $14.9 million but the figure drastically dropped to $6 million per day as the crypto market plummeted.
However, the NFT market is regarded as nothing but a bubble. There have been quite a few sceptics of NFT technology and the idea of buying just an ownership certificate which also, oftentimes, does not give copyright ownership has been called downright absurd. There are two sides of the story and where critics believe NFTs to be nothing but a money-hoarding scam, others do believe in the technology and how it has the potential to become the future in a digitized world.