I am wondering why are NFT tokens so hot right now?
Because it is new and with a lot of money flowing into it.
The gains in the last week are pretty significant.
I cant imagine everyone running to play some NFT supported video game or really wanting to spend alot of money on buying digital art etc.
So is this insane rally based on Hype and FOMO?
Do you predict the price rally will cool off and retrace soon?
Yup, hype and fomo. If it's about the price rally, just as the usual thing we experience. It will somehow cool off and correct and so on.
You can compare it with the defi hype. But once people realized that the value of NFT really depends on what it is really representing for, slowly they will die down. However, since they are just starting to hit the market, expect that most of the NFTs will be overpriced in the market. If you want to get a hold one of these NFTs, make sure that you are paying for something that will really be valuable years from now. Because for sure, a lot will try to sell worthless NFTs for thousand bucks or more.