Is the NFT virtual item bubble deflated?

Surely many people still have not forgotten about the unique painting that was sold for $ 69 million in March. After that, many other digital products also sold for millions, even tens of millions of dollars in auctions. In essence, they are truly unique digital products certified by NFT (Non-fungible token).

An NFT is a unit of data on a digital ledger called a blockchain. Wherein, each NFT can represent a unique file and, therefore, they are not interchangeable. NFTs can exist in many forms of digital files such as artwork, audio, video, video game items, and other creatives. Digital files are infinitely reproducible but the NFT represents them being saved on the blockchains to which they belong. They are considered as certificates of ownership for a certain product.

NFT virtual item sales plummeted.

However, the latest data shows that the NFT hype is fizzled out. At the peak on May 9, the 7-day average of NFT products reached $176 million. However, in the seven-day average through June 15, it dropped to just $8.7 million. It’s about to fall to early 2021 levels, Nonfungible said.

“When you see an asset class appreciate as rapidly as what NFT products have experienced, there is a relative drop in price,” said Gauthier Zuppinger, chief executive officer of Nonfungible.

Meanwhile, another expert said that the demand for NFT-certified products appeared when a section of people became extremely rich thanks to the sharp increase in the price of cryptocurrencies. However, this fever seems to be cooling down, especially when the cryptocurrency market is no longer as “aggressive” as before.

With NFT products selling for millions of dollars, experts describe them as “a sure sign of speculation”. However, speculation is often accompanied by instability or even facing the possibility of collapse.

While advocates emphasize the endorsement value of the NFT, problems have arisen. Many content creators complain about their work being stolen and sold as NFTs online. The legal value of this technology is still unknown.