The Non Fungible Tokens that trended so much in 2021 were pushed into a strong downward trend in 2022. Virtually all the popular NFT tokens including the Enjin coin have lost more than 90% of their values in 2022. The bear season which befell the Crypto market this year had affected the performance of every other cryptocurrency in the market today. With the price of Bitcoin bouncing back to reclaim its support level above $17K level, many are now wondering if there is light in the tunnel also for NFTs to bounce back. Are the NFT tokens set to recover now or are we to expect more dip? This work will help you understand the major reason why the tokens have been on a downward trend.
What is NFT?
Non-Fungible Tokens have become one of the most popular Cryptocurrencies in the market today. The fact that it provided an opportunity for artists, content creators, designers, musicians, and investors to monetize their arts and other creative works has helped spread popularity for these tokens.
NFTs are a unique form of cryptocurrency that can not be changed into another. They are used to designate authority and ownership of arts. The invention of NFT in the cryptocurrency market has taught investors that they can convert talent, skill, and arts into crypto and list them in the market for trading.
Meaning of Downward Trend
A downward trend in Crypto trading is used to describe the period when prices push lower continuously over a long period. During this period, prices drop drastically, creating new lows in the market.
Why is the NFT trading volume on a downward trend?
The NFT trading volume has been on a strong downward trend in 2022 as a result of the series of aggressive interest rate hikes embarked upon by the Fed which caused prices to drop massively since 2022. Often hiking the interest rate pushes investors to withdraw from risky assets and seek and dive into low-risk assets with higher interest rates as safe-havens.
Similarly, the series of insolvency cases that led to five different crypto exchanges filing for bankruptcy protection successively this year had further discouraged new investors from coming into the market. This has further affected the trading volume of the NFT tokens today.
Above all, it appears that investors are still fearful and not sure of the next direction to expect during the Fed’s session in December 2022. Many traders preferred to observe first before taking positions in the market.
Is there light at the end of the tunnel for NFTs today?
An important question that most crypto traders have not ceased to ask today is: whether the dip is over. For NFT investors, the major question for them is whether there is still light at the tunnel for investing in NFTs.
Though many artists and musicians alike are currently willing to create new NFTs, it remains for the old ones to recover as prices do not seem ready to pick off yet. The price of Bitcoin is currently below its major support level above $17450. The price needs to break above this level for the entire market to turn bullish again.
How to trade NFT
NFT tokens are important digital assets available for trading at the popular crypto exchanges including: Binance, OKX, Gemini, Kraken, etc. To trade the NFTs, the trader needs to create an account with any given cryptocurrency exchange and fund his account after completing the identity verification process
List of Best crypto exchanges to trade the NFTs today
Binance
eToro
Kucoin
Coinbase
Kraken
Bitstamp
Kraken
Bitfinex
Huobi Global
Capital.com
