Thread by @DCLBlogger

Is the NFT Market a Bubble?

Are we moving too fast, if so, where's the top?

Let's explore. 👇

1/ I'm going to explore both view points. Obviously I love NFTs and my 3 years of experience may have me bias.

So...be critical with reading my stuff.

2/ NFTs as a piece of technology that can revolutionize digital ownership is most likely here to stay.

Spearheaded with a few stand out markets such as gaming, art, collectibles which are proving the use case.

BUT there are some heavy accelerators here we need to consider.

5/

- crypto people have 5-10x'd their wealth in 6 months
- crypto continues to appreciate
- media love big sales numbers = mainstream FOMO
- social media lights fire to everything
- Entrepreneurs validating this 'hobby'
- Projects are starting to bridge the gap well

6/ The above points coupled with a hotbed of innovation due to the versatility of the tech feels like we're at the start of something huge.

BUT, markets traditionally have been hyped in the NFT space, (because the demographic was small).

7/ This is the first time, the onramps provided have opened the door to 100-1,000x + the user/collector base.

So a lot of us are betting on projects, artists that will appeal to the masses, (and ofcourse ourselves).

8/ What are the threats?

Some,

- If the industry fails to penetrate mainstream before crypto markets correct.

- New projects/industries attracting hype.

- Secondary market being disappointed

- Bitcoin/crypto volatility

If ETH goes back to $400, will we still see $1M NFT sales?

This means someone has to down 2,500 ETH. A LOTT of money even for a crypto-native.

This may burn non crypto investors/collectors as crypto people may want to pull their $ out. (has happened many times before).

On the other hand, if the Beeple auction does $5-10M, more media and collectors will rush to participate.

That's the assumption many investors are taking, at least in the art market.

NBA top shot is whole other beast. Aint even going to try break that down.

At the end of this bull market, if we correct heavily then NFT projects that still have majority crypto-native investors might also be subject to that correction.

As proven in the past.

I personally feel confident in projects breaking out to attract mainstream $/creators.

Mind you, the NFT industry has been steadily climbing for 2-3 years even before this madness.

So whatever crypto/USD people do, there already IS a community that highly value their NFTs.

NFTs also seem to be a way to socially signal you are part of a community, collect a certain artist, etc.

As internet culture evolves with social media, it seems NFTs will be pegged to this growth.

Main points,

- Ample room for growth
- Crypto swings will shock some projects, (both positively and negatively)
- Long term should survive
- Study and know/love what you're getting into

Here's a YouTube Video for a deeper dive!
->