Artists and investors in the leading non-fungible token (NFT) marketplace SuperRare are staring at an uncertain future. That’s because its average artwork prices have consistently plunged in the last 50 days.
Tradingplatforms.com has presented data showing its average prices have declined by 49.64%. From a high of about 9.55 ETH on 1st Feb 2022, the price has tumbled to 4.74 ETH.
“The hype surrounding the breakout of NFTs is petering out,” explains Tradingplatforms.com’s Edith Reads. She adds, “The NFT market is correcting itself which comes with users exercising prudence in their purchases.”
Is SuperRare’s NFT bubble popping?
The declining prices have coincided with declines in the marketplace’s other critical metrics. For instance, SuperRare’s monthly artwork sales dropped from 487 to 355. Likewise, its active collectors reduced by 40 from 277, and crypto art volume plunged from roughly 7.4M to 3.7M.
That’s led some commentators to suggest that we could be amidst an NFT bubble. Edith, however, disagrees with that assertion.
She concedes that certain artists could be cutting their losses which explains the price drops. However, she insists that what’s happening on SuperRare doesn’t necessarily reflect happenings in the overall NFT market space.
This turn of events has seen SuperRare’s DAO’s revenue dwindle. At press time, the DAO’s primary revenues had shrunk from $1,047,599 to $517,305. Similarly, its secondary earnings sank some $21K from $47,177. Artist loyalties have also been on a downward trend.
Mixed reception of NFTs
Since they broke out, NFTs have attracted acclaim and criticism in equal measure. To their proponents, they are the future of ownership. They allow for the tokenization of anything, enhancing portability and provenance.
On the flipside, NFT-skeptics have seen them as nothing more than an overhyped fad. To them are a hollow construct to which one would be at pains to ascribe a real use case.