Bored Apes is Leaving Behind a Trail of Disaster but the NFT market Does Not Care

Non-fungible tokens (NFTs) refer to digital assets of items such as art, play-to-earn games, land, and virtual real estate.

Market sentiments' have shown that non-fungible tokens (NFTs) have faced a downfall in recent months. With market conditions plunging and an increase in hacks and low-quality projects, NFT projects such as the Bored Ape Yacht Club have suffered the consequences with floor prices dropping below $100,000 this year, as stated by Cointelegraph.

Non-fungible tokens were all the hype at the beginning of the year but with the recent concerns for digital currencies and the global economy, are NFTs still making investors money?

Both small investors and big-time investors have openly shared interest in these tokens as the rest of the world joins in on the hype. Non-fungible tokens refer to digital assets of items such as art, play-to-earn games, land, and virtual real estate.

The profitable aspect of NFTs comes from the digital ownership that investors acquire when they purchase virtual assets, as these are forever stored on blockchain technology.

On August 29, it was reported that, before the launch of the y00ts NFT project on Solana, the prices for the team's current NFT collection, DeGods, reached new highs over the weekend. And, in terms of trading volume, DeGods has surpassed all NFT projects in the last 24 hours. As a result, the NFT market has not been destroyed. Furthermore, according to a recent study, the Metaverse has the potential to grow to $5 trillion in value by 2030. And it is well known that NFTs are a key component of the Metaverse. In this context, it is predicted that the NFT market will be worth more than $230 billion by 2030.

Benefits of Investing in NFTs

NFTs have several benefits that make them appealing to investors. Firstly, NFTs are digital assets that are stored on a blockchain. This means that they are secure and cannot be counterfeited. Secondly, NFTs can be traded 24/7 on decentralized exchanges. This gives investors greater flexibility and access to the market. Finally, NFTs have the potential to appreciate value over time. This makes them a good long-term investment option.

Risks of Investing in NFTs

Investing in NFTs is not without its risks. The main risk is that the value of an NFT may decrease over time. This could happen if the underlying asset (e.g. a digital painting) decreases in value, or if the technology underlying the NFT (e.g. the Ethereum blockchain) becomes less popular. Another risk is that an NFT may be subject to fraud or theft. This is a risk inherent in all digital assets, but it is important to be aware of it when investing in NFTs.