After the Terra Luna crash, NFTs might be next, says Morgan Stanley
While Bitcoin and the crypto market continue to fall for the seventh week in a row, multinational investment bank Morgan Stanley warns investors that NFTs might be next to collapse after Terra. A historic crash took down the stablecoin Terra, and the token Luna went from almost $90 to a complete $0 within a few days.
Last week, the Wall Street giant reported that there wasn’t a correlation between the price drops of cryptocurrencies and the stock market. Instead, the bear market taking over cryptocurrencies was purely due to investor speculation and decreased demand.
Apart from the crypto market, NFTs and virtual real estate are also vulnerable to speculation from investors. Even the leading projects could collapse, similar to Terra and Luna, which were among the top cryptocurrencies.
According to a report from Chainalysis, NFT transactions slumped from $3.9 billion to nearly $1 billion from mid-February to mid-March. Projects like Moonbirds, Okay Bears, and BAYC’s Otherdeeds have generated large profits from sales in this period and held the market together.
After Luna’s recent crash, investors and experts in the industry believe that the market may be shifting from historical growth to a more mature market with declining sales.
“NFTs look to be entering perhaps one of many maturity stages. We expected this and believe it’s a normal development in such technology,” said Modesta Masoit, finance director at Dappradar.
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].
