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A poignant example is presented with the game "Axie Infinity," which was initially championed for its innovative integration of NFTs and play-to-earn mechanics. The market for its currency has plummeted drastically, signifying the broader market's susceptibility to decline. As a result, no NFT collection has reclaimed its value once lost, a stark contrast to traditional investments where fluctuations are often transient.
A Market Built on Hopes and Dreams
The crux of the cryptocurrency and NFT market seems to hinge on a fear of missing out (FOMO), where individuals buy into hype, under the illusion that the value will always rise. However, the fundamental design leaves little room for sustainable growth. The intertwining of high expectations and reality proves detrimental.