Research Summary
The report discusses the recent downturn in the NFT market, attributing it to three main factors: the introduction of leverage in the system through Blur’s lending and borrowing functionality, the release of a new NFT collection called Elementals which led to a market-wide sell-off, and the general sentiment surrounding NFTs and the lack of organic demand. The report also highlights the rise of Layer 2 solutions (L2s) in the crypto market, with OP, BIT (now MNT), and ARB leading the way.
Actionable Insights
- Monitor the NFT market: The market is currently experiencing a downturn, but it’s important to keep an eye on it for potential recovery signs.
- Be cautious with leverage: The introduction of leverage in the NFT market has contributed to its volatility. Be mindful of this when making investment decisions.
- Watch out for the rise of L2s: L2s are gaining traction in the crypto market. Consider exploring investment opportunities in this area.
