Anders Helset, the Head of Research at K33 Research, expresses the belief that during the next bull cycle, it is advisable to abstain from acquiring NFTs (Non-Fungible Tokens).
He emphasizes that in previous bull cycles, Bitcoin always took the lead, followed by a substantial growth in altcoins, contributing to the overall market surge. However, the reasons for the continued growth of altcoins after Bitcoin's rise varied with each cycle. Helset believes that the only common factor in these cycles was that altcoins did not always retain their value in the long term.
Based on an analysis of the previous bull cycle, Helset notes that it typically began with Bitcoin's rise, followed by an increase in altcoins, including Ethereum (ETH), meme tokens, Ethereum competitors, and DeFi tokens. It's worth noting that there was often a surge in NFT activity just before the onset of a bear market.
However, Helset believes that the situation will be different in the next bull cycle, particularly regarding NFTs. He anticipates that along with the bull market's growth, there may be a speculative frenzy surrounding NFTs, as people attempt to replicate the previous growth model. However, in the expert's opinion, this frenzy is likely to be short-lived and quickly dissipate. His forecast is based on the waning interest in NFTs, and he emphasizes that the mere presence of NFTs on the blockchain does not guarantee an automatic increase in their value.
While Helset sees potential in some use cases for NFTs, he asserts that the likelihood of achieving significant profits through NFT trading is exceedingly low. The researcher is also concerned about the lack of clarity regarding the mechanisms driving the value increase in certain NFT projects. Overall, Helset advises caution when it comes to NFT investments.
