Is The NFT Hype Bubble About To Pop?

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Last Updated on 3 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Celebrity Endorsements all around for NFT (Non Fungible Tokens) as of late (not in the least by Mark Cuban) and now even a praising article in Reuters. Referring once again to the Wall Street Cheat Sheet, we got to point to possible euphoria at this point.

For all of you who remember DeFi at the end of the summer of 2020, is it possible that this trend has got to pop before it grows further?

Advertentie.

DeFiā€™s 2020 summer

allow us to remind you that crypto comes with wild swings. Although by now established Blue Chip DeFi coinsĀ likeĀ Chainlink (LINK), Uniswap, Aave and DAI are hard to emit from the CoinMarketCap, even they all remember the end of the 2020 summer like yesterday.

At the time, when Bitcoin traded for $10k only, DeFi was all the hype and even Mainstream Media started mentioning it in the slower news months of August. Terms likeĀ Yield FarmingĀ andĀ Liquidity MiningĀ were all the rage.

That is until the Sushi saga hit and DeFi encountered a roaring selloff which saw some of these coins halved by end of October. As November came rolling around and both PayPal and Square announced Bitcoin investments, DeFi grew along with the rest of the cryptosphere and itā€™s all goodĀ now.

NFT madness

As such, there are indeed striking similarities as it is now being mentioned almost daily. The latest works by artist Beeple are now selling for millions, which seems to be in the overbought range to us.

Rodriguez-Fraile, who just bought his first Beeple piece, admitted:

You can go in the Louvre and take a picture of the Mona Lisa and you can have it there, but it doesnā€™t have any value because it doesnā€™t have the provenance or the history of the work.

The reality here is that this is very, very valuable because of who is behind it.

Furthermore, if you come to consider that even Paris Hilton is now getting ready to produce NFT art, it might indeed be time for that Hype warning.