Why I think the selloff in crypto could be good for NFTs
I'm not sure if what I'm about to write will be a popular or unpopular opinion, that being said, it's the perspective I have so I thought why not share it with all of you?
Unless you're waking up this morning under a rock or in a cave, you probably noticed that BTC, ETH, and just about every major crypto seems to have fallen off a cliff. Here's a look at the top five cryptos as of publishing:
If you're new to crypto this might be a pretty terrifying morning, if you've been in crypto for a while, this might just be a normal Wednesday morning for you. For me personally, I bought ETH at $200 back in 2017, and since then I've continued to buy at a wide range of price points from $400 to $4,000. Today, I'm buying more ETH.
For those keeping score, ETH got up to $4,300 last week, this morning it went down to almost half of that. Now it's coming back up but my guess is it's going to stay below $4k for a little bit, and I think this is actually a good thing for the NFT space.
Here's why.
A lot of NFT projects don't adjust their pricing based on the price of ETH. This means that a Meebit that was priced at 2ETH last week, is priced at 2ETH today. The difference is, that Meebit that was $9,000 last week, is $5,000 today. For new NFT investors that are just starting to get into the crypto and NFT space, this means the barrier to entry has just gone down.
When I talk to my crypto friends about NFT prices, they always look at prices in ETH, when I talk to my friends and family that are still trying to wrap their heads around NFTs - they always think of everything in dollars.
Today, new NFT investors can buy into just about every NFT project out there at a ~50% discount, and that means a wider range of new investors can enter the market that were priced out before. Or at least that's my two cents.
On the flip side, some people will be scared to jump into anything related to cryptos now after the recent volatility, and that could very well go against the positive sentiments that I have. There's no right or wrong answer here but a fact nobody can deny is that just about every NFT is on sale today, how long that sale will last is anyone's guess.