Promising returns in the first few weeks of the new year have NFT watchers hoping for a comeback. But with demand from its 2021 peak largely evaporated, collectors wondering if they should get in on the NFT trend would do well to remember a key buying principle: Collectors are led astray when driven by speculation. Stick with what you love.
NFTs (or non-fungible tokens) exploded onto the scene in 2021, in a moment where internet investors began flexing their buying power in new ways. The crypto market was reaching new highs, while meme stock traders temporarily broke Wall Street with their short squeeze tactics. NFTs were both a side effect and a symptom of the time, wherein internet buzz was enough to generate significant demand.
