In the past crypto bull run (2021), NFTs (Non-Fungible Tokens) witness an extraordinary boom, making multiple early adopters millionaires overnight. This phenomenon started with the Bored Ape Yacht Club (BAYC), which is a collection of digital art apes with different facial experiences that also serve as a virtual yacht club membership card. At the pick, the price of BAYC reached 400,000 dollars, and a large number of investors around the world began to purchase these tokens, waiting for a similar fortune.
However, after the end of the Bull Run, the entire NFT market collapsed, and the majority of the investors were stuck with digital art, which had no actual value. As of 2024, more than 90 per cent of all NFTs are worthless; investors have lost millions. Now the question remains: can NFTs make a comeback in the 2025 Bull Run or meet its doom?
Why the NFT market crashed after 2021?
Reaching its peak in 2021, these tokens started to lose value as most of the NFTs were overvalued during the boom, driven solely by hype and speculation, not intrinsic value. As the market begins to cool down, these overvalued assets quickly lose their appeal along with value. In this time period, these tokens were a new concept, so the majority of the investors had little to no knowledge about NFTs; they only started to invest due to word of mouth. In 2021, the crypto market was performing effective coins like Bitcoin, Ethereum, and Doge were breaking all-time highs; among the investors, there was a fascination with anything which have the word blockchain.
However, this fascination does not last long, leading to a sharp decrease in these token’s prices. Finally, NFTs do not serve any real-world applications, and these are digital collectibles. As a result, the lack of tangible utility and intrinsic value limits the appeal of NFTs to a broader audience.
Will NFT make a comeback in 2025?
In 2025, the crypto market is expected to witness one of the biggest Bull Run ever, so there is a high probability that these tokens will also make a comeback. In the last couple of years, these tokens have evolved from digital collectibles since now there are potential use cases in gaming, real estate, and ticketing, which will contribute to a price surge. More and more people are becoming familiar with blockchain technology, which is bringing these tokens back to the limelight.
There is also a major change in the government’s perception towards crypto, NFTs, and blockchain as countries like the US, Canada, Singapore, and Luxembourg are supporting these trends. This might play a vital role in encouraging investment and innovation towards these tokens. Additionally, the development of AI-generated tokens, and interoperability between different blockchains can improve user experiences along with the prices.
The potential downside
Although the future of the these tokens looks bright, there are multiple barriers that can hinder their growth. The crypto and these tokens markets are known for being extremely volatile, which is the reason a large section of customers tends to avoid investing in such risky assets. Another key downside is related to the energy consumption associated with the Proof-of-Work (PoW) consensus mechanisms of blockchain, and this creates a disparity between the demand and supply, which can adversely affect the overall price and future prospects of these tokens. Due to the absence of any clear guidelines and regulations, the number of scams and frauds is on the higher side in the NFT market.
Hence limited number of investors showcase interest and confidence in investing in these tokens, which is not a good sign. Finally, a large number of investors are skeptical about the value and authenticity of these tokens as the previous market crash is still in their memory.
Celebrities who have lost millions in NFT
1. Justine Bieber
In 2022, this famous singer purchased a Bored Ape for approx 1.3 million dollars; however, the current price of this tokens is even lower than 40,000 dollars.
2. Logan Paul
This famous YouTuber has spent over 2.5 million dollars on multiple tokens; however most of these tokens have lost more than 70% of the original value.
3. Snoop Dogg
This famous rapper has spent around 7.09 million dollars on a token called Right-click and Save as Guy, which has lost most of its value.
4. Neymar Jr.
This famous footballer has spent over 1 million dollars on two tokens from the Bored Apes Yacht Club; however, their value has decreased by over 700,000 dollars.
5. Marshmello
This famous singer purchased an token named KajuKing #1680 for 1.4 million dollars; however, its current value is around 2000 dollars.
Is NFTs a Scam?
The scam is a strong word, and it is something that is designed to be misleading or have ulterior motivates like taking someone’s money without intending to deliver on any promises. This is why these tokens cannot be considered scams, as these projects are created by random and anonymous artists and sale them for certain prices. However, these tokens are still in the early phase, which is the reason there are negative aspects associated with this asset. Doing research is extremely important; if someone purchases these tokens without knowing the team behind the project, he or she will definitely face major losses.
The way ahead
NFTs are technically photos, songs, or any kind of art which are stored in blockchain technology. As the world is moving from centralization, there is no doubt that these tokens will become a big thing in the upcoming years. In the 2025 Bull Run, these tokens are definitely making a comeback. However, investors who are interested in buying these tokens need to be cautious.
They have to remember that if they purchase these tokens with 100 dollars, other investors should be ready to purchase the NFT for more; otherwise, there will be no returns. So, a long-term viewpoint will be beneficial in making viable returns on the NFT market. If the historical narrative plays in 2025, the NFT market can reach its peak in the last quarter; however, this market is highly volatile and unpredictable, hence making informed decisions is challenging.
FAQ
What are NFTs?
NFTs are technically photos, songs, or any kind of art which are stored in blockchain technology.
Will NFT make a comeback in 2025?
In the 2025 Bull Run, NFTs are definitely making a comeback.
Is NFTs a Scam?
NFTs cannot be considered scams, as these projects are created by random and anonymous artists and sale them for certain prices.
Should you invest in NFTs?
The NFT market is highly volatile as the price of the NFTs can fluctuate at a rapid pace, hence cautious investment philosophy is necessary.