How an NFT Investor Can Survive a Bear Market: Practical Tips

In the spring of 2022, the cryptocurrency market decided to move against the laws of nature. The red charts forced the investor through all phases to accept the inevitable. The value of Bitcoin rolled back 80% from the highest, and the total capitalization fell below the psychological limit of 1 trillion dollars.

Against this backdrop, the NFT sector was hit. Trading volumes of non-fungible tokens are steadily moving towards an annual low level. NonFungible statistics show that on July 15, the daily sales volume was 28,920 transactions, while the trading volume in the NFT market collapsed to $ 35,788,508,28.

NFT investors are divided into two conflicting camps. Some buy up non-fungible tokens “with discounts”, while others sell their assets in a panic with shouts of “Chief, it’s completely gone!”

So, what behavioral model suits NFT investors during the crypto winter of 2022?

A bear market will clean up the NFT sector for “passengers”

In 2021, the NFT market peaked, with everyone talking about non-fungible tokens. Stories of a British schoolboy and an American teenage girl who made a fortune creating NFT collections inspired thousands of new “romantics” who came to the ecosystem on a hype.

Experts see the fall in trading volume as some industry filtering. NFT tokens will not be issued by anyone who is lazy, hoping to make the least money on them.

The Google Trends analysis of the NFT request shows that the peak interest (100) for non-fungible tokens was in January 2022, after which the hype passed. As of June 15, the popularity of the NFT search is 14 – the number of searches has decreased by more than 85%. This trend suggests that fraudulent projects will leave the market – the industry will be cleansed of “passengers” who open up new prospects.

While almost all NFT tokens were resold a couple of times last year, that strategy will not work now. Investors are more careful about analyzing prospects and choosing NFTs with growth prospects. Anything else risks staying in their crypto wallet for a long time.

Top NFT collections and their future

The representatives of the best NFT collections always gave the basic mass of trading volumes to the market. Their value varies from a few tens to several hundred ETH. In the Coinmarketcap ranking, the 5 best NFT collections in capital letters look like this:

• Crypto-punks

• Bored Ape Yacht Club

• Mutant Ape Yacht Club

• Otherdeed for Otherside

• Azuki

All of the above NFT collections run on the Ethereum blockchain. The value of NFT tokens has fallen, and the price of Ethereum has also fallen sharply. It is a good idea to add a few top NFTs to your portfolio, especially if the ecosystem has prospects.

For example, the Mutant Ape Yacht Club collection has become mainstream in the meta-universe ecosystem. This collection also has a lot of sympathy for Elon Musk, who recently put a collage of Bored Ape Yacht Club monkeys on his Twitter avatar.

Experts from Markets and Markets say that by 2027, the NFT market will grow to $ 13.6 billion, and the best NFT collections will not play a small role in this growth.

GameFi and Move-to-Earn projects: wait or buy?

When we talk about the NFT market, there are two new industries that are directly related to non-fungible tokens – GameFi and Move-to-Earn.

Crypto.com claims that the blockchain gaming industry will reach $ 50 billion by 2025. The assumption is actually correct – the GameFi sector is mainly in its infancy, but it is already attracting significant investment.

It makes sense to buy NFT tokens from top games and meta worlds with an eye on the future. For example, the land of the Sandbox project has even interested the Dubai Virtual Asset Regulatory Authority.

It’s more complicated with move-to-earn, and it’s not worth rushing to buy sneakers from STEPN and other projects. You can become a virtual shoe baron, but regardless of whether you make a profit … With minimal risk, you can go into promising projects where the price of sneakers is no more than $ 100.

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