Ellen Britt for CNT #NFT
Both Ether and Bitcoin, two of the most well-known cryptocurrencies, have taken a tumble. But NFTs, even though they are tied to crypto, are for the most part holding their position as a store of value.
DappRadar, a data analysis company, recently reported that even while cryptocurrencies were plummeting, losing nearly fifty percent of their all time highs in November, the top 100 NFT collections in total lost only fifteen percent of their value, and some collections even gained value during the same period.
Closely Linked But NOT The Same!
It’s important to understand that while cryptocurrencies and NFTs are closely linked, NFTs themselves are not a cryptocurrency. Yes, you need cryptocurrency to purchase an NFT and both use the blockchain as proof of ownership but each one is an individual entity.
Markets Starting To Separate?
This difference in the losses between crypto and NFTs highlights something interesting: crypto and NFTs may now be starting to function in distinctly different markets. And this bodes very, very well for the future of NFTs!
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