The global crypto market has been witnessing never seen before changes in the business. Some of which have left partisans of the industry in perplexity. While mainstream cryptocurrencies are stuck in the clutches of the bears. Booming sectors of the industry have been stealing the pie of cryptocurrencies.
NFTs and metaverse, which until last year were mysterious to non-crypto or better said non-tech folks. Are now heading mainstream, as digital art forms have taken all over social media platforms. The influence has been such that the asset class has left cryptocurrencies in shade. However, the space still holds hiccups that ought to be addressed.
Are NFTs And Metaverse Projects Now A Threat To Mainstream Cryptos?
On-chain and social metrics firm Santiment , cites that assets revolving around metaverse. Have been spectating an appreciable increase in the volume of trades off-late. But the prices have not caught up with the wind. As altcoins continue to exhibit an increased rate of separation from one another. That said, digital assets such as MANA, SAND, and AXS ought to be under the radar.
Successively as previously mentioned, while the volume of trades of metaverse projects have been overwhelming. The prices of the respective projects are yet to react to the volumes.
To which netizens opine that the volumes are currently driven by sentiments of traders. Who have been dubious of their investment and trading strategies. Which has been implying to mainstream cryptos as well.
In succession, the space is also witnessing the rise in the sale of NFTs like CryptoPunks, and Bored Ape Yacht Club (BAYC). Which have been retailing for mind-boggling numbers.
CryptoPunks for instance has the lowest price set at “61 ETH”, while the most expensive one was traded for $7.58 M. The value of sales made in 24-hours tallies to $2.75 M.
However, despite the overwhelming volume of trades the cryptocurrency in which the NFTs are transacted have received little to no respite from the sluggish pace.
For reference, Ethereum, and Solana which are leading in the NFT space, have had little to no impact on the price of the native token. Which justifies the lack of firm belief and sentiments in the business.
Summing up, the cryptoverse would need a major bullish news or update. That could help the sentiments turn bullish from the persisting negative sentiments.
Which have been playing a pivotal role in the price action of digital assets despite the increasing volumes and utility. Since, the crypto market is largely driven by sentiments, positive sentiments are imperative in initiating the alt season.