Can NFT Markets Return To 2021 Highs?

picture of an animated bull as a PFP, implying the NFT market 'bull run' that is yet to come

For those who held an NFT in 2021, it felt like the sky was the limit, markets were cruising at cyberspeed, and business was booming. From a range of celebrity endorsements from Tom Brady, Kim Kardashian, and Snoop Dogg, the industry was heading into unchartered terrain. Some of the more notable NFT projects netted seven-figure profit margins for some early investors. But following a sharp depreciation in the overall cryptocurrency market, associated novelties like NFTs experienced a complete bloodbath.

TL;DR:

  • NFT 2021 Boom and Bear Market: 2021 witnessed NFT explosion with celebrity endorsements, massive profits; market plunged due to crypto depreciation.
  • Crypto Casinos Shine in 2021: Amid cryptocurrency surge, crypto casinos demonstrated blockchain’s convenience, stolen the narrative into 2023.
  • NFTs in a Bear Market: NFT projects struggle to replicate 2021’s momentum; MAYC collection spotlighted, potential catalysts and uncertain future.

picture of an animated bull as a PFP, implying the NFT market 'bull run' that is yet to come

2021 – The Golden Era Of NFTs!

Although many people within cryptocurrency stated they expected to see a bull run, and many called it throughout the back end of 2019 and 2020, there were few, if any, who managed to predict just how colossal it would be. Many cryptocurrency projects increased in multiples of 10 or 20. Projects like Dogecoin went up over 10,000%, and a raft of bullish news emerged from all corners of the globe. From legal currency in El Salvador to reliable, reputable cryptocurrency casinos that have helped to bring new customers to traditional casino gaming, 2021 was a breakthrough year for digital assets.

The markets were booming, and so were cryptocurrency casino projects. These were providing many apprehensive detractors with clear and irrefutable proof that the blockchain was not only here to stay but also was more convenient.

It’s a strong showing, too, that despite the horrendous decline in some of the prominent cryptocurrency projects, crypto casinos have stolen the narrative within the first half of 2023. More people continue to warm up to the idea of using Bitcoin to play their slot, roulette, or blackjack games.

The advances, security, and convenience have highlighted the potential in the crypto casino sector. Bitcoin slots work identically to traditional casinos. However, the critical difference is that you just need to send your assets from your wallet to the provider’s wallet. Crypto casinos could flourish in the next bull run like NFTs did in 2021.

But the real question is, can NFTs themselves get back to the dizzying heights they did a couple of years ago?

Promising NFT Projects In The Current Market

It’s difficult for NFT projects to gain momentum as they did in the 2021 bull run. In a bear market, making money is complex, and many traders and investors see this time as a period of accumulation or investing in NFT products cheaply.  One of the most notable projects that caused a stir during the bull run was the Mutant Ape Yacht Club (MAYC) Collection.

At one point, the floor price for them reached 32 Ethereum. Unfortunately, some of the holders have been targeted by cybercriminals and witnessed their NFTs disappear from their wallets. It’s a sad tale, but it shows just how valuable these NFTs are, even during a market downturn.

Many analysts have said MAYC could experience a resurgence if the bull market returns. But sometimes, new projects can emerge quickly. This is why it’s a good idea to keep an open mind and identify projects with a forward-thinking development team, highly-visible social media presence, and a strong and engaged online community.

Possible Catalysts For Positive Price Action

Even with big news on the horizon, like a possible Blackrock ETF or the Bitcoin halving, which has traditionally resulted in a pump not long after, the broader global conditions are causing concern for many investors. Despite the unusual societal change of 2021, the overall market was recovering. Globally there were nowhere near the same inflation levels, cost of living crisis, and other current geopolitical issues. If a bull run does occur, NFTs will experience some bounce, but it’s hard to determine whether it will return to the 2021 levels.

Weighing up the potential of a return to a market where some NFTs were sold for nearly $100 million might be challenging to picture in the bleakness of the current market. Jack Dorsey’s first tweet, when minted as an NFT, sold for nearly $3 million; it is now on the market for $2,000.

This should quantify exactly how dark things are at the moment for NFTs.

Final Thoughts

NFTs will always have use cases, and they’re a flexible product that helps investors understand how cryptocurrency markets work. They’re not in danger of completely disappearing, but whether we will see a return of tweets being sold for millions of dollars again does seem very unlikely at this stage. In the cryptocurrency world, though, those who have been around long enough know it would be foolish to rule anything out.

Firstly, we would need to see a return to the bull market. Positive price action, particularly Bitcoin pushing back past $40,000, is a start. Once Bitcoin sets the foundation for a more positive outlook on the market, associated sectors like the NFT industry might have a better medium to long-term route to reaching those dizzying heights again.

Times can change quickly, as can attitudes within the cryptocurrency space. If enough money is pouring into the sector, and a BlackRock ETF is approved by the SEC, the cost of several projects will soar. In the event of another bull run, we can’t rule anything out; just how much retail investment is around to drive the price is the real question.