A CryptoPunk non-fungible token (NFT) recently sold for a $10 million loss as the market for digital art secured on a blockchain continues to decline.
A non-fungible token, or NFT, is a unique digital identifier that is recorded on a blockchain and is used to certify ownership and authenticity. Often referred to as “digital art,” NFTs were all the rage among crypto investors in recent years, with CryptoPunks and Bored Ape Yacht Club collectibles selling for millions of dollars.
But now, the market for NFTs has slumped, resulting in owners losing millions of dollars on their investments. Some NFTs that sold for as much as $50 million are now being resold for pennies on the dollar, say analysts. The top five most expensive NFTs continue to belong to the CryptoPunk collection, according to data from NFT analytics firm CryptoSlam.
Selling at a Loss
Many NFT holders now seem willing to offload their NFTs at a loss following the markets decline. The digital wallet behind CryptoPunks #3100, the third-highest NFT ever sold, just resold for 4,000 Ethereum (ETH), a $10 million loss compared to its initial price.
Other CryptoPunk collectibles that were bought for more than $1 million are now listed for sale online for as little as $65,000. Crypto analysts say that the NFT market has been on a general decline since it peaked in 2021 despite the collectibles relative scarcity and unique digital features.
The price of Ethereum (ETH) is also on the decline, having fallen 52% so far this year.
Is ETH a Buy?
Most Wall Street firms don’t offer ratings or price targets on Ethereum, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of ETH has declined 50.94% in the last 12 weeks.
