Giant Wall Street issues stark prediction for NFT after massive collapse in Bitcoin, Ethereum and $1 trillion cryptocurrency

Bitcoin, Ethereum and other major cryptocurrencies have had a massive crash over the past week, caused in part by the sudden collapse of a major currency.

Participate now for Forbes’ CryptoAsset & Blockchain Advisor And successfully navigate the bitcoin and cryptocurrency market

Bitcoin price has lost 25% over the past month with the largest competitor, Ethereum, down more than 30%. Other smaller cryptocurrencies have taken a bigger hit – raising fears that others will collapse altogether.

Now, with the alarming economic warning signs of “shock therapy” emerging, analysts at Wall Street giant Morgan Stanley have predicted that the price of digital non-collectible tokens (NFTs) could come under pressure.

Do you want to stay ahead of the market and understand the latest cryptocurrency news? Register now, for free CodexDaily newsletter for cryptocurrency investors and the curious

“The areas of high cryptocurrency and leverage, such as Decentralized Finance (DeFi) and crypto-backed stablecoins, are experiencing mass liquidation as it becomes clear that all the high prices have been trading on a speculative basis, with limited real user demand,” Morgan Stanley wrote. Analysts led by Sheena Shah in a report I saw Quindisk.

The bitcoin and cryptocurrency market crash triggered by Luna and terraUSD (UST) last week sparked “a broader reassessment of where many crypto prices should be trading,” analysts wrote, warning that many who have bought NFTs in recent months will not be able to Than to sell it at a higher price.

NFTs, the blockchain-based digital tokens tied to various forms of virtual and virtual media, have seen a huge price hike over the past year as the art, music and sports worlds embraced them as a potentially lucrative new way to monetize fans.

Some of the world’s biggest celebrities and sports personalities, including singer Madonna, rapper Snoop Dogg, actress Gwyneth Paltrow and quarterback Tom Brady, have either created or supported the NFTs. The frenzy was fueled in March last year when digital artist Beeple NFT sold some of his work that had sold for $69 million at Christie’s — propelling him to be among the top three artists alive, according to the auction house.

In late April, the top five NFT groups — including Bored Ape Yacht Club and Cyberpunks — accounted for about $1 billion in primary and secondary sales, according to data from Cryptoslam. At the beginning of May, the company behind the Bored Ape Yacht Club NFT group raised a staggering $285 million by selling NFTs representing the land in the still-in-development virtual world game.

However, data from the NFT Nonfungible analytics platform indicates that total NFT sales have fallen by more than 90% since hitting an all-time high in September last year. The Wall Street Journal Earlier this month – he described the NFT market as “crumbling”.

Subscribe now to Codex—Free daily newsletter for cryptocurrency enthusiasts

More from ForbesIt Still Has ‘Potential As A Coin’ – Elon Musk Gives A Surprising Signal From Dogecoin After Bitcoin, Ethereum And Huge Cryptocurrency Crash

Despite Morgan Stanley’s bleak NFT price predictions, the Wall Street giant wrote a research note last year that claimed luxury goods companies could use NFT to generate billions of dollars in digital revenue.

Morgan Stanley analysts wrote in November that NFTs and digital elements in the digital gaming world known as the metaverse could generate $56 billion in revenue for the luxury market by 2030.

Leave a Comment

Your email address will not be published.