Binance CEO Changpeng “CZ” Zhao recently expressed shock at the NFT market’s explosive expansion over the last year. Individuals have “gone mad” while paying high costs for NFT, according to the CEO.
Binance CEO was sceptical of spending $69 million for a piece of digital art NFT, the record-breaking sum for which artist Beeple sold Everyday: The First 5,000 Days last year.
NFT on the verge of a bubble
CZ observed that nothing can be worth so much, and compared the market to a possible bubble, in reference to Beeple’s sale.
Beeple has also voiced concern about the NFT market, linking it to the dotcom bubble of the 1990s. However, he anticipates that, similar to the dotcom disaster, the NFT sector would see quick consolidation, favouring high-quality work.
The value of the NFT market skyrocketed to $25 billion by 2021, up from $95 million at the end of 2020.
After Ukraine erected an NFT Museum depicting its battle with Russia, the facility witnessed a significant increase in interest.
A big role of social aspects
Popular NFT initiatives like the Bored Ape Yacht Club (BAYC) and CryptoPunks have been chastised for their unimaginative graphics. The tokens, however, continue to command exorbitant prices, with the lowest price for a BAYC being 109 ETH ($381,670).
The industry has also drawn short-term investors who invest in companies in the hopes of immediately reselling tokens for a profit.
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