The NFT bull market that began in 2021 continues to show strength in Q2 2022, with many blue chip NFT collections in the top 10 currently green on the daily, weekly and monthly floor price charts.
More potentially bullish news emerged today with Elon Musk buying Twitter – the Tesla CEO has long been a proponent of crypto and blockchain tech in general, and has mentioned non-fungible tokens.
Elon Musk on NFTs
Elon Musk has at times adopted a humorous tone with NFTs, calling Twitter’s prior plans to add support for NFT profile pictures ‘annoying’. One of his Twitter mentions of NFTs made the common comparison of NFTs to jpegs, implying that they are simply a picture.
Earlier however he did reference how digital assets can include the tokenization of music, joking that he was selling a song about NFTs as an NFT.
I’m selling this song about NFTs as an NFT pic.twitter.com/B4EZLlesPx
— Elon Musk (@elonmusk) March 15, 2021
NFT Bull Run
The NFT market showed some signs of a correction in early 2022 alongside Bitcoin and Ethereum crashing from $69k and $4.8k, back to $33k and $2.1k respectively.
BTC and ETH have since reclaimed the $40k and $3k levels and are now both up 4% on the day since the news of Elon Musk buying Twitter for $44bn broke.
While some speculated in Q1 2022 that ‘NFTs were dead’, as Google search volume trends for terms like ‘NFT’ and ‘metaverse’ were down, that bearish prediction has turned out to be wrong.
In fact Opensea NFT marketplace trading volume was still high in Q1 2022. The drop in search traffic may have simply meant that people already understood the meaning of NFT, knew where to buy NFTs and were visiting NFT marketplaces directly.
Recently the following NFTs have made new all time high price floors, in response to news updates of metaverse projects, NFT airdrops, staking rewards for holding, and other bullish developments on their roadmap:
- Bored Ape Yacht Club (BAYC)
- Mutant Ape Yacht Club (MAYC)
- Bored Ape Kennel Club (BAKC)
In general many crypto investors have been diversifying into NFTs as the uptrend in the NFT bull market has been outperforming cryptocurrency, providing a higher ROI.
Last month Visa Inc continued its interest in the NFT scene by launching an NFT program for creators. The multinational corporation called NFTs one of the ‘fastest growing categories‘ of business, and valued the NFT market size at $100 billion.
While it’s harder to track the NFT markets, Nansen.ai recently estimated they are up 28% this year. If Visa’s estimate of the NFT market capitalization is accurate that would only be 5.5% of the total crypto market cap, suggesting NFTs still have a lot of room for future growth.
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Cryptoassets are a highly volatile unregulated investment product.