If you’ve been reading my articles, you know I’m optimistic about NFTs for several reasons. Specifically, I believe it will lead to new applications, widespread adoption, and act as an invisible social layer.

However, a recent fiasco during the bank runs has cascaded into pain and fear among broader markets. NFT projects like Moonbirds, Doodles, and Clones have had a tough few weeks. Does this mean the end of these NFTs or an opportunity to buy in? It depends on your perspective.

While I believe in the latter, I don’t think you have to buy to participate. It’s fine to learn more as a participant or bystander. Purchasing NFTs can be profitable, but it involves a significant amount of risk, so I wouldn’t recommend it without thorough research.Why I Think We Are At The Worst Of The Bear Market

#1 Participants are at max fear, uncertainty, and doubt

I use the term FUD not to describe negativity, but rather to refer to a lack of clarity about how to proceed and what NFTs mean to people. What was once an enjoyable experience has become one that causes them pain and suffering, as they watch the floor prices continue to drop.

Some might argue that they entered for the wrong reasons, had flawed strategies, or had the wrong mindset. That’s a fair point, but I believe that the current uncertainty has resulted in irrational behavior, which signals that we are at the peak of the bear market.

#2 Founders are feeling the heat from the market participants

Leading a major NFT project comes with its highs and lows, which is to be expected. However, what was not expected was the reaction of the founders in some cases, particularly with regards to Moonbirds, Doodles, and CloneX. I won’t mention specific incidents, but you can either search for them on Twitter or take my word for it that some of the comments and tweets made by the founders should not have been publicized.

#3 Lost of sense of value

During the bull market, NFTs were often priced irrationally, with people spending large amounts on gas fees and new launches despite the lack of corresponding dollar value.

This may have been due to the free flow of money enabled by platforms like 3AC, Luna, and FTX. However, in the current bear market, many NFTs are undervalued despite their potential benefits, such as claiming physical items or leveraging 3D assets.

This is due to the basic law of supply and demand — NFT prices are simply a function of supply and demand, and the combined effect of lack of buying demand and increased selling pressure from the FUD is what is leading to these suppressed prices. This is a stark and opposite contrast to the overvaluation we see in bull markets.

But Should You Buy NFTs?

As mentioned above, believe it’s not necessary to invest in NFTs. Instead, I see NFTs as a way to leverage Ethereum. Regardless of whether ETH’s price increases or decreases, as long as my NFT can fetch a higher amount of ETH, it’s a win for me. Currently, I see an opportunity for this.

When considering which NFT to buy, there is no correct answer. It depends on your budget, risk tolerance, interests, and willingness to participate in the community. If you’re looking at it purely as an investment, it might be safer to go with the supposed “blue chip” NFTs, although they may not be entirely risk-free. If you are able to explore the potential applications of NFTs, in my opinion, there lies the greatest opportunity. By keeping up with daily updates, or lack thereof, you’ll be better equipped to make the best decision, whether it be buying or selling.

The Social Amplifying Effect Of NFTs

I must confess that I didn’t anticipate such a high level of pessimism in the current bear market. When I compare my experience from the last bear market to now, I believe that the social aspect of NFTs is the primary reason for this negativity.

The creation of a community and discussions around NFTs unintentionally amplifies the emotions of the crowd. This is why people act irrationally during the bull market and become overly negative during the bear market. It’s not necessarily bad, but it’s a characteristic of the NFT market.

Considering this, I reinforce my belief that the current NFT market is excessively negative and oversold. And I’m aware that my perspective comes from the privilege of having gone through a worse bear market in 2019 and having a long-term perspective toward NFTs. Unfortunately, not everyone shares this view.

I believe that NFTs, like cryptocurrencies, will transfer from weak hands to strong hands as they endure through market cycles. Strong hands are not necessarily those with financial power but those with conviction. I could be mistaken, but this is what I perceive, and I’m acting based on my knowledge and experience.