As per a new Bloomberg article, the non-fungible token frenzy is still going strong, with $US3 ($AU4) billion worth of collectibles and digital art of all kinds and sizes buying on just one platform in the previous month.
In August, OpenSea, the biggest NFT marketplace, witnessed sales of $US3 ($AU4) billion, a significant increase over previous months. In addition, as per Dune Analytics statistics reported by Bloomberg, August witnessed OpenSea’s highest-ever volume records, with over 300 million transactions in a given day and consistent purchase volume during the month.
Some experts see the rise in NFTs as evidence that individual speculative investors are moving away from bitcoin and meme stocks and into digitized collectibles. However, even though bitcoin and the two most popular meme stocks, GameStop and AMC, are still much over 2020 levels, their values have been rather stable in recent months.
Bitcoin indicators indicate that some of the froth is dissipating. However, the number of active accounts and the cost of funding bullish bitcoin futures wagers have yet to bounce back from their April peaks. At the same time, demand in alternative currencies such as Cardano is at a record level.
“A part of retail has migrated to NFTs,” Martha Reyes, head of research at crypto broker Bequant, said to Bloomberg. “Let’s face it, it’s just more fun to collect JPEGs of primates and penguins.”
Reyes was alluding to the Bored Ape Yacht Club and Pudgy Penguin NFTs, which were sold for 41.4 and 2.6 ether, correspondingly. For reference, the monkey JPEG is worth almost $US150,000 ($AU203,591), while the penguin is worth about $US10,000 ($AU13,573).
In August, a digitized rose from an NFT series inspired by the 16th-century Dutch tulip craze bought for over $US50,000 ($AU67,864), such a speculative investment in art.
“Take a moment to absorb this. This a bubble that is inspired by a more famous bubble,” one Redditor reacted. “At least the Dutch used actual tulips.”