Supply is growing really fast. Watch out below.
Two months ago, I wrote about NFTs and how they are an example of manufactured scarcity. Each individual NFT is unique, but there are a whole lot of unique NFTs out there, which means that they aren’t really that rare.
NBA Top Shots keeps printing more moments and prices are coming down commensurately. Whereas the most common and unwanted moments sold for more than $10 a while back, their prices have slowly drifted down to $2.
Even “rare” Top Shots aren’t that rare when new ones keep being minted. The same can be said for just about any NFT.
There’s only so much money to go around. (You can say the same thing about new top level domains when they launched. There was only so much domainer money to be invested in new TLDs. The first ones out of the gate, such as .guru, were buoyed by domain investor money. There wasn’t much dry powder left when the 100th domain launched.)
I don’t know what the total pool of money is out there to go after digital collectibles such as graphics. But I do know the supply of NFTs is growing quickly, so don’t count on much price appreciation.
Collecting things can be fun. But if they don’t have utility, you’d better collect them for more than just hoped-for price appreciation.