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NFT price crash stirs debate on whether stimulus-led fad is over

Bloomberg
Bloomberg4/5/2021 10:3 AM GMT+08  • 3 min read
NFT price crash stirs debate on whether stimulus-led fad is over
Average prices for NFTs have tumbled almost 70% from a peak in February.
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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.

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.

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