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Breech 🎩🍖Ⓜ️
@breech
Why are NFT's getting rekt? To me, the answer is simple and I've been telling people this for over a year since I exited all of my ETH NFT's that had value. In 2023 we started the early phases of this bull run. Our NFT's are traded in the value of their underlying assets (for most, ETH) and not just USD. As "number go up" in a bull run, it becomes a lot harder for an asset to maintain a higher price in its underlying asset while that asset is simultaneously increasing its value in USD. People want to sell the NFT's to acquire/sell the underlying asset. For example, if NFT collection XYZ (made up) has a floor of 10 ETH while ETH is $3.5k, expecting this collection to not only maintain, but ideally go up in ETH value while ETH (let's guess here) goes to $10-11k by the peak of the bull run just isn't likely. What's more likely is that SOME might hold enough to maintain their previous USD value, but that's still taking an L compared to just holding ETH. Next NFT run is when this bull has culminated
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Blue Cockatoo
@bluecockatoo
There are too many Ariannes in the comment section here! But besides that... Mostly agree with you. From the art (vs PFP and large generative collection) side of NFTs the price fluctuations are also a big paradox. Collectors buy and expect to be able to sell later for a profit and for the artist's "floor" price to maintain or go up in the asset they bought with, but artists are left to figure out how to price things that haven't sold yet. For example: if the ETH USD price goes up, acquiring collectors want artists to lower their asking prices in ETH because it costs them more USD to buy. But when the price in ETH USD goes down, those same collectors want artists to lower their prices in ETH because they say they've lost a lot in the dip. Either way, acquiring collectors want the prices to come down and selling collectors want them to maintain or go up. Artists are caught in the middle and can't even rely on secondaries to make up the difference if they lower prices to please new collectors. It's tough.
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Breech 🎩🍖Ⓜ️
@breech
For sure, tbh I wouldn't want to be an artist trying to sell NFT's in these conditions, it sounds like a nightmare. As you can tell my post is 99% directed at the PFP / "utility" generative type collections. It's unfortunate that these garbage collections soak up the vast majority of the liquidity in the space opposed to actual artists with you know, real art that they've created. Degens doing degens things I guess.
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