A burst of interest in NFTs hit a peak last month when a digital artwork by Beeple sold for a staggering US$69.3 million. For some, that sum showed NFTs were in the grip of investor excess in a world full of stimulus, and destined to fizzle. Others who study the technology argue the use of blockchain to create scarcity for digital collectibles is a lasting innovation rather than a price fad.
Prices for digital collectibles like art and sports memorabilia are sliding, turning the focus back on whether the nascent market for so-called non-fungible tokens is any more than a fleeting mania.
Average prices for non-fungible tokens (NFTs)– essentially tradable digital certificates that use blockchain technology to prove ownership and provenance of online assets – have tumbled almost 70% from a peak in February to about US$1,400 ($1,883.09), according to Nonfungible.com, which tracks a variety of NFT marketplaces.
