The NFT craze is showing no signs of slowing down with a newly launched NFT tulip collection epitomizing how some view the current state of the crypto art ecosystem.
The NFT collection appears to be an ironic reflection of the tulip mania-like status of the current NFT scene.
The collection is on sale on the OpenSea NFT market place as “113 unique algorithmically generated collectible Tulips.” The NFTs were created by a digital artist going by the Twitter handle @jtbxl who has a number of pieces for auction on the Rarible platform.
‘Tulip mania’ refers to a period during the Dutch Golden Age when prices for some bulbs of the recently introduced and fashionable tulips reached extraordinarily high levels, and then dramatically collapsed in February 1637.
Angel investor Brad Mills made the comparison to his 26,000 followers on Twitter on March 11.
“In 5 years, people will look at the 2021 NFT craze as the Digital Tulip Bubble. Buying NFTs from celebrities, sports starts & social media influencers for tens of thousands of $ is like buying their hats & shirts for thousands of dollars.”
Investor and Ethereum advocate Ryan Sean Adams commented on how frothy the current NFT frenzy is by observing the fully diluted market capitalization of Dapper Labs’ token FLOW has grown to an extraordinary valuation.
How is FLOW worth $40B?
Guys…this is all getting stupid again.
— RYAN SΞAN ADAMS – rsa.eth (@RyanSAdams) March 19, 2021
The maximum supply of 1.34 billion tokens at a current market price of $31 would give FLOW it a fully diluted market cap of approximately $41.5 billion, placing it athird in the market cap charts, just above Binance Coin.
However, its actual market cap for circulating tokens is currently $988 million based on a circulation of 31.5 million tokens according to Coingecko.
Dapper Labs is the firm behind the wildly popular CryptoKitties and the record breaking NBA Top Shots NFT collections.
Its Flow blockchain was unveiled in September 2019 following venture capital investment from Andreessen Horowitz, Warner Music Group, Union Square Ventures, and a number of others.
The concept for a new blockchain targeting games, social networks, and NFTs arose after Ethereum faced large scalability issues in 2017 with the high transaction fees during the CryptoKitties hype.
The same hype is now occurring with crypto art and Flow is reaping the benefits. Over the past thirty days, the price of its FLOW token has increased 63%, hitting an all-time high on March 4 of a little over $40 according to Coingecko.