NFTs, or non-fungible tokens, are digital collectibles that are stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique. NFTs can be used to represent photos, videos, audio, and any other types of digital files.
This year, NFTs and the crypto world saw a huge surge in the collectibles market. However, the reason for the boom was never quite clear with why they had such skyrocketing prices.
Crypto news site Protos reported this week, that on May 3rd, NFT transactions hit $102 million in a single day, with the seven-day period surrounding the peak hitting $170 million. Fast forward to today, a month later, that number stumbled to a 90% drop from the peak at $19.4 million in NFT sales.
Why did NFTs have such a staggering peak? Why were they driving the market? Was it just a get-rich-quick fantasy?