The Non Fungible Tokens Bubble is Ballooning and HOW?

Non Fungible Tokens
7 mn read

The value of a once widely accessible meme soared when its original creator remastered it and auctioned it as a digital piece of art in 2024, fetching 300 Ethereum. This transformation into a Non-Fungible Token (NFT) gives it unique value that cannot be replicated or exchanged for something similar. The art’s sanctity lies in its one-of-a-kind nature, preserved through its status as an NFT.

In 2024, the Non-Fungible Tokens (NFTs) market continues to experience an unprecedented surge in popularity, sparking discussions about a potential bubble. These tokens, representing singular digital assets on blockchain technology, have captivated artists, collectors, and investors. The market boasts a vast array of NFTs, ranging from digital art pieces to virtual real estate, with its growth showing no signs of slowing down.

The Rise of NFTs

The concept of NFTs is revolutionary in that it allows for the ownership and verification of digital assets in a decentralized and transparent manner. Each NFT is one-of-a-kind, providing proof of authenticity and ownership through blockchain technology. This unique characteristic has attracted creators looking to monetize their digital works and collectors seeking to own exclusive pieces of digital art or other virtual assets.

The NFT Frenzy

In recent months, the NFT market has experienced a frenzy of activity, with eye-popping sales grabbing headlines. These staggering figures, from the iconic Beeple artwork sold for $69 million to the digital home in Decentral and that fetched over $450,000, have drawn attention to the potential wealth to be made in the NFT space. Celebrities, musicians, and athletes have also jumped on the bandwagon, releasing their own NFT collections and driving further interest in the market.

Is NFT a Crypto?

Since these NFTs exist on a blockchain network, they’re cryptocurrencies just like your Bitcoin

The blockchain network is a series of numbers and letters encrypted and stored on the distributed ledger across the web.

Blockchain then authenticates the creator of the art via a digital signature to establish who owns it and the originality. 

Each node on the network consists of information on the seller’s details, the buyer’s, and the date on which the NFT was sold. The encryption makes this information scarce and leads to an upward projection of the price of the NFT crypto art.

  • NFTs can not be replaced, and it exists on blockchain technology. It is an exclusive cryptographic token.
  • Real world items also can be NFTs like artwork and educational materials, real estate, and many others. 
  • NFT can help real world tangible product sales, buying, and trading. It can be more effective. Also, it can help to stop the probability of any fraud. 
  • NFT can function as an intellectual property right, property rights, individual identity, and many more.

The most interesting possibility of NFTs is they can make a big investment area. Consider a specific real state-owned by many people. Real estate buying is not easy. It is normally a complex and long legal process. But for the NFT, it can be shared in the malty party. It can be under a smart contract. one may have a share of the beach house and entertainment plaza while having the space in a shopping mall. These properties have different prices and can be shared, with ownership available to many individuals.

Factors Contributing to the NFT Bubble

The NFT market has witnessed an unprecedented surge, largely fueled by several key factors contributing to what some analysts describe as a “bubble.” Here are some of the primary drivers behind this phenomenon:

1. Speculative Investment

One of the primary drivers behind the ballooning NFT market is speculative investment. Investors are buying NFTs not only for their intrinsic value but also with the hope of selling them at a higher price in the future. This speculative behavior has led to inflated prices and a sense of FOMO (Fear of Missing Out) among buyers.

2. Celebrity Endorsements

The involvement of celebrities and well-known personalities in the NFT space has added to the hype. When a famous artist or musician releases an NFT collection, it often generates significant buzz and drives up demand, contributing to the bubble-like behavior.

3. Limited Supply of Desirable NFTs

The scarcity of certain NFTs, especially those from popular artists or projects, has further fueled the frenzy. Collectors are willing to pay a premium for exclusive pieces, driving prices higher.

4. Digital Ownership Appeal

The idea of owning a digital asset that is verifiably scarce and unique appeals to many, especially in a world where digital content can be easily copied and shared. NFTs offer a sense of ownership and exclusivity that traditional digital files cannot.

These factors, combined with the speculative nature of the market, have contributed to the rapid expansion and volatility of the NFT bubble.

Signs of Concern

Amidst the enthusiasm surrounding Non-Fungible Tokens (NFTs), there are notable signs indicating potential concerns within the market:

  1. Price Volatility: The NFT market has witnessed significant price fluctuations, with some assets experiencing rapid escalation followed by steep declines. This volatility raises cautionary flags regarding the possibility of an overheated market.
  2. Proliferation of Low-Quality NFTs: With the expansion of the NFT market, there’s been a surge of low-quality or imitative NFTs saturating the space. These “cash grab” tokens risk diluting the market and undermining buyer confidence.
  3. Regulatory Uncertainty: The regulatory environment surrounding NFTs remains in flux, as governments and regulatory bodies grapple with how to categorize and supervise these digital assets. The ambiguity in regulations introduces uncertainty and potential risks for investors and collectors alike.

Non-fungible Tokens Stocks

Non-fungible tokens (NFTs) have become a significant trend in the world of digital assets and collectibles. While there are no “NFT stocks” per se, several publicly traded companies are involved in the NFT space or have exposure to it. Here are some companies to consider if you’re interested in investing in NFT-related ventures:

  1. Coinbase (COIN): Coinbase is one of the largest cryptocurrency exchanges in the world. While not solely focused on NFTs, the platform facilitates NFT trading and transactions.
  2. Sotheby’s (BID): Sotheby’s, the renowned auction house, has entered the NFT market by hosting auctions for digital art and collectibles. This provides exposure to the NFT space through a traditional investment avenue.
  3. Takung Art (TKAT): Takung Art operates an online trading platform for artwork, including digital art and NFTs. It’s a smaller company, so it can be more volatile, but it’s a more direct play on the NFT market.
  4. Enjin (ENJ): Enjin is a cryptocurrency project that focuses on creating a blockchain ecosystem for gaming and NFTs. Investing in ENJ would give you exposure to the NFT market within the gaming industry.
  5. Animoca Brands (AB1): Animoca Brands is a company that develops and publishes mobile games, many of which incorporate blockchain technology and NFTs. It’s a way to invest in the growing intersection of gaming and NFTs.
  6. Unity Software (U): While not an NFT-specific company, Unity provides the engine on which many NFT-based games and applications are built. It’s a more indirect way to invest in the infrastructure behind NFTs.
  7. Dapper Labs (private): Dapper Labs, the company behind NBA Top Shot and Crypto Kitties, is currently private. However, if it goes public in the future, it would be a significant player in the NFT space to consider.

Remember, investing in stocks, especially in emerging markets like NFTs, carries risks. Doing thorough research or consulting with a financial advisor is essential before making any investment decisions.

The originality of the art piece

The downside to owning the original art piece is that the owner cannot control the number of replicas created in the market and claimed to be actual. Like a Louis Vuitton bag has plenty of copies floating around in flea markets that look so much like the original, the difference is barely negligible. 

Additionally, there also isn’t a way to verify who the creator is. For instance, anyone can hop onto a Non fungible tokens marketplace and claim that they own the token. There are no ways to cross-check the actual creator because their identity may or may not be public information.

Nonetheless, the ownership of NFTs enables you to use them anywhere you like, without it being a case of copyright infringement. It can be utilized for public or commercial use. 

Their uniqueness and appeal to collectors limit the diversity of assets that can be turned into non-fungible tokens (NFTs). Here are some examples:


A classic example is a video of a significant moment in sports, like LeBron James’ slam dunk at the NBA, which went viral. The original video, considered collectible by fans, was auctioned for over $200,000.


Memes have become valuable NFTs, such as the famous Nyan Cat. Additionally, meme-inspired cryptocurrencies like DOGE coin have gained popularity as investments.

The Disaster Girl meme has fetched thousands of dollars in sales.

Digital Art:

Traditional art collecting has shifted to digital platforms, with digital art gaining immense popularity. Artist Krista Kim’s 3D render of the “Mars house” stands as a piece of digital real estate. Artist Krista Kim’s 3D render of the “Mars house” stands as a piece of digital real estate.


Nike introduced “Crypto Kicks,” patenting technology in 2019 that links blockchain-based NFTs to physical items like sneakers. This innovation allows buyers to verify the authenticity and ownership history of their sneakers.


Institutions like the University of California, Berkeley, have entered the NFT space. Berkeley, for example, is selling an NFT that includes patent disclosures related to Jim Allison’s Nobel Prize-winning work.


Musicians are now releasing albums and songs as NFTs, offering unique experiences and ownership perks to fans. This includes special edition tracks, concert tickets, and even royalties from future sales.

Virtual Real Estate:

Developers are selling virtual spaces within online worlds like Decentral and The Sandbox as NFTs. Within these virtual ecosystems, users can develop, trade, and monetize parcels of virtual land.

Domain Names:

Sellers are also selling premium domain names as NFTs, allowing buyers to secure exclusive online identities and digital real estate.

These examples represent just a fraction of the possibilities in the NFT market. As long as an asset is unique and desirable to a specific audience, it has the potential to become a valuable NFT.

The Future of NFTs

While the current state of the NFT market may resemble a bubble, many believe that NFTs have long-term potential beyond the hype. The technology behind NFTs offers unique opportunities for artists, creators, and collectors to interact in novel ways. As the market matures and becomes more regulated, it is likely that the speculative fervor will subside, leaving behind a more stable and sustainable NFT ecosystem.

The NFT bubble is growing due to speculative investment, celebrity endorsements, scarcity, and digital ownership appeal. However, caution is advised due to price volatility and low-quality NFTs. As the NFT market continues to evolve, it will be fascinating to see how it transforms and whether it can sustain its current growth trajectory.

The Non-Fungible Tokens (NFTs) market has seen an unprecedented surge in popularity, leading many to question whether we are in the midst of a bubble. NFTs, which represent unique digital assets stored on blockchain technology, have captured the attention of artists, collectors, and investors alike. From digital art pieces to virtual real estate, the variety of NFTs available is vast, and the market continues to expand rapidly.

Final Speech

The NFT market is currently experiencing a significant boom, offering various opportunities for incredible profits on a daily basis. However, alongside these opportunities, it’s crucial to acknowledge the risks and challenges that come with regulatory intervention.

As the market expands, the importance of addressing legal and regulatory risks associated with NFTs becomes increasingly evident. We’ve seen instances where the NFT market has faced scrutiny and intervention from regulators, highlighting the need for clear guidelines and oversight.

Considering the diverse nature of NFTs, from digital art to virtual real estate, there’s a growing necessity for a comprehensive regulatory framework. This framework should address issues such as copyright protection, fraud prevention, and investor protection.

Establishing an international NFT regulatory body could ensure long-term sustainability and legitimacy in the market. Such an organization could provide a unified approach to regulation, offering clarity to market participants and fostering trust among investors.

While the NFT market continues to flourish with incredible potential, it’s essential to proceed with caution and advocate for responsible and transparent practices. By addressing regulatory challenges proactively, we can create a more secure and sustainable environment for the future of NFTs.

13 thoughts on

The Non Fungible Tokens Bubble is Ballooning and HOW?

Leave a Reply

Your email address will not be published. Required fields are marked *

Reading is essential for those who seek to rise above the ordinary.

Discover Cryptoafflux

Welcome to CryptoAfflux, your gateway to the dynamic world of cryptocurrency. Dive into insightful articles, expert analyses, and the latest trends in the crypto universe. Explore our rich collection of community stories and join a thriving community where innovation and finance intersect.

Build great connections

Explore all the content from the CryptoAfflux community network. Dive into forums, groups, member discussions, posts, social walls, and so much more. With endless opportunities to engage and learn, you can never get tired of it!

Become a member

Get unlimited access to the best articles on Cryptoafflux and support our  lovely authors. Upgrade Now

Loading data ...
View chart compare
View table compare