Are NFTs Insulated from Crypto Winters?

As the crypto market dips, then dips again, do NFTs represent a hedge?

Are NFTs insulated from crypto winters?

This question was posed on the Bankless podcast recently.

It’s an important question because it can be used to determine how we might distribute our capital in times of crypto downturns and whether or not NFTs can in fact become a hedge of sorts against such downturns.

The episode’s guests — crypto thought leader Zeneca and Eric Connor of EthHub — speculated that NFTs were indeed decoupled from crypto prices.

However, it seemed like their evaluation was based more on gut feel than methodical assessment.

One of the arguments was that the average price of some collections had increased from 5 ETH to 12 ETH during the downturn. But with the price of ETH dropping by about 40% in the past 30 days, an increase in the effective Ethereum price is to be expected.