Oversupply Is Holding Back the NFT Market
There would be problems with supply and demand as more celebrities, companies, and artists jumped on the NFT bandwagon. A well-known businessman who supports NFT claims that oversupply, greed, and poor projects are to blame for the market’s sharp decline over the previous year.
On December 12, Vaynerchuck tweeted about his most recent blog post, which examines the problems facing the NFT sector and the direction he thinks it will take in 2019.
Regarding the state of the market, Vaynerchuck emphasized that there has been a lot of fear, uncertainty, and doubt (FUD) expressed by the media and social media users this year, with topics like declining trading volumes and floor prices frequently being in the foreground. Vaynerchuck explained this prediction by highlighting three major issues holding back the market: oversupply, short-term greed, and poor operators.
The company contends there was bound to be an oversupply given the influx of big brands, sports leagues, influencers, celebrities, and independent artists last year.
Vaynerchuck contends that another market boom similar to 2021 is unlikely in 2023. Particularly because he doesn’t see the macroeconomic outlook improving anytime soon. Furthermore, Vaynerchuck compared the crypto and NFT sectors to the internet boom of the late 1990s and early 2000s. Many companies failed, while the strongest rose to dominance. Today’s cryptocurrency prices were red, with the global crypto market cap falling 1.81% to $841.11 billion. The total crypto market volume over the last 24 hours has increased by 26.98% to $30.35B.
Meanwhile, the prices of major cryptocurrencies such as Bitcoin and Ethereum fell 1.36% and 2.07%, respectively, to USD$16,940.30 and USD$1,246.86.
Today’s Dogecoin price dropped as much as 9.57% to USD$0.087669, with a 24-hour trading volume of USD$569,703,934. Dogecoin is eighth, with a live market cap of USD$11,631,053,686.