Nonfungible tokens (NFTs) have once again taken the spotlight this week with the sale of EtherRock NFTs and Bitcoin Rock Ordinals for over $100,000 each. These sales come at a time when the cryptocurrency market is experiencing a resurgence, with Bitcoin surpassing $37,000 for the first time since May 2022 and Ethereum rising above $2,100, instilling renewed optimism. As crypto prices continue to rally, cryptocurrency investors are cautiously hopeful that the market has reached a definitive low.
The EtherRock Collection and Bitcoin Rock Ordinals
The immensely popular EtherRock collection consists of 100 identical grey boulder NFTs on the Ethereum blockchain. One of these NFTs, EtherRock #95, was sold earlier today for 100 ETH, which was valued at approximately $209,000 at the time. Similarly, a Bitcoin Rock Ordinal NFT from a comparable collection was sold for 2.99 BTC, totaling over $111,000. The Bitcoin Rock Ordinals depict rock images inscribed on the Bitcoin blockchain. Despite lacking any unique benefits or utilities, these seemingly basic images of rocks have gained immense speculative value.
Social media reactions to these sales have been divided. Some view them as a welcome return to the excitement of last year’s peak market, while others see them as reminiscent of the overexuberance and “absurdity” that eventually led to the crypto crash. Although NFT trading volume reached a six-month high this week, it still pales in comparison to the frenzied activity seen in the spring of 2022 prior to the market decline. While these rock sales have reignited hopes of a prosperous market, metrics suggest that it is still too early to declare a new bull run.
Reflecting on the Past NFT Bull Run
The sale of EtherRock #95 for over $200,000 this week brings back memories of the massive NFT bull run in 2021. At its peak in November, an EtherRock was sold for $1.3 million, as buyers rushed to join in on the hype surrounding these digital rocks. The creator, known as “Nakamoto,” intended for EtherRocks to demonstrate the illusory nature of art’s value. They humorously remarked on the irrational exuberance, saying, “Fate loves irony.” In January 2022, the Bitcoin Rock Ordinals were introduced as a deliberate imitation of EtherRocks, with near-identical rock images inscribed on Bitcoin’s blockchain by “burning” satoshis. Although initially less popular, the Ordinals have also generated significant sales in recent months. The EtherRock phenomenon serves as a remarkable example of how hype and speculation drive crypto markets, as owners of rare NFTs manage to find eager buyers during periods of frenzy. Nevertheless, markets can swiftly change direction, making it currently uncertain if the crypto space is truly ready to embrace its former fervent interest in digital collectibles and artwork. However, an increased occurrence of high-value sales will undoubtedly indicate a resurging NFT mania.
