The Importance of Historical NFTs in the Bear Market
Like every technological milestone out there, NFTs have a rich history filled with projects that shaped the industry in one way or another. You can classify historical NFTs as the founding projects or the OGs in the space. Despite the current bear market, we've seen the likes of Cryptopunks and other historical NFTs pump up in sales volume. This is coming at a time when newer blue-chip projects have nosedived in value.
Why are people suddenly picking interest in these NFTs? Is there something about them that makes them more valuable than others?
In this article, we'll take a thorough look at historical NFTs and their importance in the bear market. We'll also cover some of the reasons why they're still relevant today.
#1 - What are Historical NFTs?
#2 - Historical NFTs and the Bear Market?
#3 - Are Historical NFTs Stablecoins?
#4 - What the future holds for Historical NFTs?
What Are Historical NFTs?
Historical NFTs are digital collectibles created on the Ethereum network between 2015 and 2019, according to the NFT history timeline created by @Leonidas.NFT. They were first introduced by Terra Anulis back in August 2015. The concept was simple: engrave messages and notes on the blockchain.
The project was still far from the non-fungible tokens we have today. However, it did introduce the idea of non-fungible tokens (NFTs), which have since become an integral part of the cryptocurrency ecosystem.
The likes of Ethereum Name Service, CryptoPunks, Cryptoskulls, and Cryptokitties followed suit. Most of them still hold much value, as we've seen in the current bear market. In fact, many of them have even increased in price over the past few months.
Historical NFTs and the Bear Market?
You'd think that historical NFTs only had a place in the sands of time. That they no longer matter. But you'd be wrong. In a space filled with apes, toads, and goblin profile pic collections, historical NFTs still stand out.
Since June, historical NFTs have had strong gains in terms of both volume and price. For example, Data from Coingecko shows CryptoPunks' floor price has pumped over 30% between June 9th and July 8th. Similarly, MoonCats and Cryptoskulls' prices have gone up 37% and 64%, respectively.
These figures show how NFTs have been able to up their value despite the bear market. So, what's the reason behind this? Why are people buying into historical NFTs now?
Are Historical NFTs Stablecoins?
When there's a stock market decline, many investors turn to gold for stability. Gold is known as a safe haven asset that's widely accepted around the world. It's the same with cryptocurrencies. Most top investors have liquidated their portfolios into stablecoins to hedge against volatility.
We're now seeing the same thing with NFTs. As the NFT market continues to struggle, investors are turning to historical NFTs as a safer form of investment. Yes, these assets are also subject to price fluctuations and market sentiments.
However, historical NFTs are not only valuable for their intrinsic value but also serve as a key point in history. Just as ancient Egyptian artifacts are important because they document civilization's rise, so do historical NFTs help us understand the development of the NFT industry. This means that if an investor buys one, they will own a unique piece of history. And because of this uniqueness, historical NFTs will continue to hold their value.
Now, it's not just about having a dated timestamp on your token. If so, every excavated item dating back to the Stone Age would be worth millions.
Instead, historical NFTs are valuable because they represent an innovation in the space or have contributed to its growth. Take Cryptokitties, for instance; these cute kitties living on the Ethereum blockchain were the reason the term "NFT" was coined. Furthermore, they were the first ERC-721 compliant tokens—the same thing with CryptoPunks, the first 10K PFP collection.
So, it's only right that these OG NFTs provide the same value for the NFTs space as stablecoin does for the crypto space. They are beyond blue-chip NFTs.
What the Future Holds for Historical NFTs?
Since the rediscovery of CryptoSkulls back in January, there's been renewed interest in historical NFTs. But they aren't the only ones making the headlines in recent times.
We saw the record-breaking sale of the "000.eth" ENS domain, the second-highest priced ethereum domain name on the entire blockchain.
Often, the next collection that disrupts the space are projects that have existed for years. With more investors turning to historical NFT investments, we can expect to see more of them hit the market. This resurgence has also sparked a new form of study known as NFT archeology, spearheaded by Leonidas.ETH and others.
As such, there's still much to come for the NFT industry. In fact, we can expect more historical NFTs to emerge in the coming years. This could lead to a new wave of supply and demand, which will inevitably fuel a new era of appreciation. In other words, historical NFTs could become the new gold standard for investing in the non-fungible token space.
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