NFT Tokens ( Non-Fungible-Tokens)

Governance and NFTs Tokens To Dump by 90%! But Why??

Author: Mustafa Mulla

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Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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  • The broader cryptocurrency market cap floats around crucial resistance, potential drop in NFTs and Governance tokens could abruptly impact the rest of the market.

  • Most of the Governance tokens and NFTs seem to be overvalued and subjective.

The total global market cap has been floating around a crucial resistance of $2.61 trillion market cap. Meanwhile, the total market cap of the Governance tokens stands at $45.9 billion with 2.3% gains round-the-clock. Besides, NFTs hold a total of $44.129 market cap and their trading volume is up by 39.12% reaching $4.5 billion in 24 hours.

There’s quite a lot of contrast between the functionality of today’s cryptocurrencies. They reckon on diverging versions of blockchain technologies. Compiling all of them embodies a mighty crypto market cap. Governance tokens and NFTs are different sections that contribute to the market with substantial volatility. The predominance of the market believes they’re overvalued and few say their values are subjective. 

However, the Governance tokens and NFTs have shown extreme volatility over the past few months. Is this the right time to buy these tokens? Or are these just overvalued?  Before jumping to invest in such tokens in greed to earn profits, thorough research needs to be done. Let’s dive and discover what the future holds for these tokens!

Also Read : People Sold Their Bitcoin & Ethereum For Shiba Inu!! Will It Be Worth?

Popular crypto analyst The Crypto Dog perplexed the community with his recent view on Governance tokens and NFTs. Governance tokens enable traders to help build the future of the platform by facilitating voting power. Where NFTs are digital collectables stored on a digital ledger. Analyst says 90% of these tokens will have an abrupt end as utmost coins are overvalued.

He urged followers to be alert as an eruptive bear market is underway. The analyst went on to address the mess involved in these sections of the crypto market. Two of these sections are subjective to speculations, indirectly these platforms turn traders into marketing agents, where they create FOMO in greed of profits. These insanely overvalued cryptos could dump by 90% in case of potential FUDs.  

Whereas NFTs are accused of being tainted by money laundering. However, crypto analyst Sancrypt.eth compared the analytics between the general crypto market versus the NFT marketplace.

The chart shown by him highlighted NFT’s intense bull market while the general market was under negative consolidation. And NFTs abrupt dump while the general crypto market was bullish.  However, the actual value of NFTs relies on the trader’s proportional investment. As the section never blows with the same light for the long term, investors may end up their trade perplexed. 

Collectively, Governance tokens and NFTs together contribute a crucial $100 billion market cap to the crypto space, possessing the strong potential to impact the rest of the market. Subjective market sentiments could cause a cash flow out of the market, dumping the rest of the cryptomarket. 

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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