TL; DR
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When the market rises along with market sentiment, crypto holders tend to invest their new-found profits in riskier assets (like NFTs).
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In late October/early November we saw price and sentiment in the market rise simultaneously, resulting in many speculative NFT projects being pumped.
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Our takeaways? NFTs are not dead, and this is the first time we’ve felt a real sense of ‘bull market mania’ since late 2021/early 2022.
Full story
NFTs are back! Prices are rising and people are buying!
…but why?
Allow us to answer your question with another question:
Remember what it’s like to be given the freedom to make bad decisions?
Your parents leave you home alone as a teenager → you throw a crazy party.
You leave home → you subsist on ramen noodles and Froot Loops, until your medical/dental bills inevitably scare you.
The way things are going in crypto, everyone seems to feel like they have the freedom to make bad decisions when the following two things happen:
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The market is pumping
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Market sentiment is turning positive
Throughout most of September and October, we saw the overall market rise while sentiment remained mostly fearful/neutral (
), keeping overall stupidity low.
But as we entered November…
Sentiment shifted comfortably from ‘neutral’ to ‘greedy’ and everyone started taking their stupid pills again and investing the newly acquired profits in riskier assets.
(“Because why not!? The market is on the rise and sentiment suggests this won’t stop anytime soon!”).
As a result, many speculative NFT projects have skyrocketed, such as ‘EtherRocks’ (the Pet Rock of NFTs), which sold last Friday for 100 ETH ($209,000 USD).
So what are the takeaways?
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NFTs aren’t dead, they’re just in a coma.
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It feels like we’re back (it doesn’t mean we are), But! This is the first time since late 2021/early 2022 that we have felt a real sense of ‘bull market mania’.
Feels good TB.