If you’ve been around the NFT community for a couple of years, then you know that the state of the crypto market and the state of the NFT market usually follow the same pattern.
If you’ve been around the NFT community for a couple of years, then you know that the state of the crypto market and the state of the NFT market usually follow the same pattern. People who wholeheartedly believe in the 1 ETH = 1 ETH mantra will pay the same 1 ETH for an NFT, whether it's worth $400 or $4,000. So when the crypto market is doing well, floors go up, and vice versa.
So why is the opposite happening in the Internet Computer NFT marketplace as the price of ICP increases daily?
I have a couple of theories. And the good news is that if I’m right, it should settle back into a more normal pattern eventually.
Why the ICP Coin Price and NFT Floors Are Inverted
Besides the decreasing floor prices, there are also far more NFTs listed than in previous weeks. This means that not only may current sellers be lowering prices, but some holders may be trying to get out. Here are a couple of possible reasons for this.
· They are bearish and want more liquidity to short the current pump.
· They are so bullish they don’t believe their NFTs will keep up with ICP for increased value.
Either way, things will only head in this direction for so long before reverting to the natural state of the NFT and crypto markets matching. Why?
· If the bears are right, once they are done shorting, they will come back to NFTs. If they’re wrong, they will sell you their NFTs for a discount and likely buy them back later at a higher price. Either way, holders win.
· If the bulls are right and ICP is on the fast track to the moon, the ecosystem will get more attention, including the NFTs stored on-chain. So even if your NFTs don’t increase in value as much as ICP does, they should still do well.
Of course, this is all speculation, and I am not an investment advisor, so you can’t take anything I write as investment advice. I believe fully in following the concept of never investing more than you can afford to lose.
IC NFTs I’m Keeping an Eye On
There are two main NFT projects I’m watching this week:
· PODs – Distrikt’s PODs are one of the few collections with an increasing floor price this week. I’m sure rarity rankings on Yumi are helping as collectors search for the rarest PfPs. Keep in mind that only about half of the PODs have launched, so the RR may change as more are released. In the meantime, I picked up a new PfP myself. It’s not rare, but it has the aesthetic appearance I wanted for my distrikt account.
· Is Not Art – This project doesn’t launch until the first week of February, but it already caught my eye thanks to connecting modern art with NFTs and limited-edition clothing and TikTok marketing. I’m happy to see real art from a real Italian artist on the IC. The release is scheduled in three batches. The first batch will contain just 30 NFTs and will sell for 15 ICP each (10 ICP for those on the WL).
Whether you are buying, selling, hunting rares, or holding, have a great week, and I’ll see you next time!
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