What Happened to NFTs? Are They Dying?
The non-fungible token (NFT) market has been facing many challenges lately. What happened to NFts?Since the January highs, the volume of daily NFT sales has fallen from just over $6 billion to only $850 million, almost a 90 percent decline. These types of falls can be a reasonable cause for concern, but they aren’t unrealistic. There are signs that this decrease is a path to the maturation of NFTs. Any new asset class goes through stages of development. How is the NFT market performing? From the start of August, the market has seen a plummet, going from 20 million dollars start of august to 2.8 million dollars on the NFT market today.
Are NFTs Dying?
The current NFT Crypto news might look like NFTs are dying. The present performances are not very encouraging, and if the idea that it is just an adjustment process doesn’t reassure you enough, here are three key reasons why NFTs are still alive and kicking.
- The NFTs floor price is not dropping
Numerous NFT projects have been released throughout the years and have managed to retain their value. The two most infamous examples are the Bored Ape Yacht Club (BAYC), also known as the Bored Apes NFT set. If you visit marketplaces such as OpenSea, you will notice that their floor price is still at 95 ETH. Ethereum valued at $1,580, as of time of writing, according to CoinDesk. CryptoPunks is another worthy example, where the floor price is still 50 ETH.
- Massive Level of Application Integration
Twitter, Reddit, and Instagram are the giants of the social media world, all of which have implemented or announced that they will implement NFTs shortly.
Moreover, these platforms are used by millions daily. With mainstream adoption and massive application integration, we will see NFTs surge in popularity and value again. After all, the most common reason some people might buy NFTs is to be a part of that limited community of owners. Showing off their NFTs through their social media channels is a perfect way for them to indirectly promote the project and keep the value of their NFTs intact.
3. NFTs in the gaming industry
Various games are being developed using blockchain technology, especially after NFTs gain mainstream appeal. If you look at metaverse or just play-to-earn (P2E) games that use blockchain technology, you’ll realize there are thousands of such games and many yet to come. These games reward the player for playing the game and getting good at it, usually with a native cryptocurrency token or an NFT.
Finally, this will mean a constant need for NFTs from game developers or gamers looking to finish an in-game task or complete a collection.
What Is the Future of the NFT Market?
The NFT market is currently going through some callous times; while most people focus on one outcome, let us look at two plausible outcomes.
Outcome 1: Market Slowly Stabilizing
People tend to dismiss newly introduced innovations and deem them as pure illusions. That was the case when the internet was introduced in the 1990s. Similarly, conventional investors dissed cryptocurrencies and NFTs upon their first appearance. Today it is an exploding market, a market we can learn its patterns. The crypto market had its fair share of turbulences, and right when most analysts started writing it off, it bounced back and introduced the world to the market adjustment and correction process. The NFT market can be going through a similar experience, and soon enough, regardless of what happened to NFTs , a bounce back will occur.
Outcome 2: Market Collapsing
Additionally, some experts remain skeptical about the future of NFT and believe it is a bubble that will eventually burst.
The current frenzy has led to JPEGs going on sale for millions of dollars. With all the new artists and investors cashing in. However, unlike actual physical artworks, it is still easy for others to replicate and create exact copies of a digital photo. This notion remains a minor technicality that won’t stop NFTs from growing.
Final Thoughts
While NFTs remain a dividing point among legacy and non-traditional investors. Especially after what happened to Nfts. Yet they are far from dead. NFTs are being introduced to many sectors and creating their own culture and community. Soon enough, we wont simply use NFTs to buy and sell artwork. They will become a prominent presence in the financial world. What happened to NFTS and the market shake-up will be just another significant bump in the road. If the hype around it is dying down now, many events can ignite the interest again. When it comes to such numbers, people tend to have selective memory of what they want to remember. A big sale on the market can refresh people’s look on NFTs or simply a tweet from a certain someone.
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