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The NFT bubble might be bursting already

April 5, 2021. Summarized by summa-bot.

Compression ratio: 50.4%. 1 min read.

Non-fungible tokens, or NFTs, are all the rage. But their popularity may have already peaked. Prices of NFTs, the digital certificates that have taken the art and collectibles world by storm this year, have plunged about 70% from their high point in February.

Prices of NFTs, the digital certificates that have taken the art and collectibles world by storm this year, have plunged about 70% from their high point in February.

The average price for an NFT on April 5 was about $1,256 -- down from more than $4. 000 in late February, according to market research site NonFungible. com.

NFTs have been an investing and pop culture mania for the past few weeks, leading some to wonder if the frenzy is a market bubble fueled by the wealthy and younger traders flush with stimulus money.

NFTs have helped boost the price of sports trading cards.

There was even a recent "Saturday Night Live" skit about NFTs. And several CNN Business staffers have also wrote about how they've dabbled in the NFT market with the purchase of cartoon cats.

Funko announced last week that it was buying a majority stake in TokenWave, LLC, the developer of the TokenHead app and website that tracks NFTs. Hall of Fame Resort & Entertainment inked a partnership late last month with marketing firm Dolphin Entertainment (DLPN) to develop football NFTs,

Funko CEO Brian Mariotti noted that in the release about the TokenWave deal, saying that the investment in NFTs marries the digital and physical collectibles business.

That may be true, but the sharp, sudden rise in the value of NFTs and more recent pullback is reminding some of other similar historic market bubbles, such as tulip mania in the 1600s, the dot com/tech crash of 2000 and bank stocks and housing prices in 2008.

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