After a bull run, value of collectible NFTs plunge, face uncertain future

The NFT market, once flush with big-money deals, has lost its lustre. While some people made “life-changing money” at the peak of its hype in 2021, others saw their tokens lose almost all value. But it may not be all gloom – Non Fungible Tokens, once only traded as collectibles of unique items like art, music, sporting memorabilia could evolve and find practical applications.
In 2021, alongside international stars, Indian celebrities also jumped on the NFT bandwagon. Amitabh Bachchan released Madhushala, his father’s poetry recitation, as part of an NFT collection featuring autographed Sholay posters and other movie memorabilia, which was auctioned for ₹7.18 crore on an NFT marketplace. Salman Khan’s Dabangg NFT collection and Rajinikanth’s ‘Shivaji The Boss’ collection were sell outs.
“Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs are indivisible and distinct,” says Aishwary Gupta, Global Head of Payments at Polygon Labs.
These tokens created new opportunities for artists and creators and enjoyed a bull run in 2021. One of the most expensive NFTs was a collage of around 5,000 images called Everydays: The First 5000 Days by Beeple, which sold for $69.3 million.