The oily frying pan that is the crypto market has been heating up as of late. There are some kernels in there that have exploded to new all-time highs, while other cryptos tread water. What's going on? It's all about those Non-Fungible Tokens (NFTs). Solana's SOL token and Terra's LUNA token have both exploded in the past week to new all-time highs by riding the crest of the NFT tsunami.
The NFT market is in a speculative maelstrom with the success of projects on Ethereum like crypto-punks, crypto-kitties, stoner kitties, etc. People are going all in trying to get their wallets wrapped around new digital assets. Both the Solana and Terra have seen tremendous speculative growth in the past weeks from the frenzy.
Above is the daily chart for LUNA (left) and SOL (right). That is some serious parabolic action. These are the types of charts that percolate through the idyllic dreams of all crypto investors. Cryptonauts holding bags of SOL and LUNA are fueling up for the moon with a smirk in their faces.
Popcorn is an apt metaphor because as the crypto market heats up there are always some cryptos (AXS anyone?) that just simply explode. NFT projects that launched on Solana recently have been flawed and received poor press, but that hasn't slowed the speculative mob.
One NFT project launched on Solana was so flawed the developers had to "kill" off their NFT creations. Projects should really wait, and battle test their projects, first impressions count. Many "investors" are pissed.
The Cryptoverse has always been riven with greed, and the NFT craze is at the tip of the greed spear. Developers are so scared that the madness will end that they're rushing projects to market that are deeply flawed. Are silly pictures of apes really worth 10k SOL, or some pixelated punks worth millions of US dollars? Just several years ago the idea of the stuffy Sotheby's auction house putting up video game images of cyber-punks for millions of dollars is just absurd, life is truly stranger than fiction. NFTs clearly in gaming and the metaverse have real utility, that is definitely the future, but the rest is cat shit. Eventually, hopefully, an equilibrium is reached, of course there will always be a market for collectibles, and ownership, but clearly people are going crazy because they're chasing those 1000X gains. Is the NFT market a fever dream? Will we wake in the next bear market and ask, "what the hell was that all about?"
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>>> Anarchiss <<<