Are NFTs on their way out? Is the NFT market dead? These non-fungible tokens have been stirring up a storm with their ups and downs, but despite all the controversy, they've got a bright future ahead.
Some folks have hit the jackpot and made massive profits from their NFTs. But on the flip side, others have experienced gut-wrenching losses. And yes, we cannot deny that the NFT market's trading volumes have taken a 97% nosedive since January 2022—but don't let that fool you!
NFTs are just getting started. And we've got five irrefutable reasons why the future of NFTs is looking bright. Let's dive in!
Let's Discuss the Numbers First
According to GWI research, there was a rise in digital currency ownership in Turkey from 25% to 27% from July to October 22. Various other countries, including Brazil, Australia, etc., experienced growing ownership of digital assets.
According to Statista's research, an average person spent around $135 on acquiring digital assets in 2022. However, this number is different for each country. Swiss investors splurged $960 on crypto purchases. Meanwhile, in Turkey, people spend $120. Hong Kong and China are currently at the top of the list regarding searches for non-fungible tokens (NFTs). Singapore follows in third place. Interestingly enough, the United States has not made this ranking list.
When Twitter's founder sold his first tweet, he did so through an NFT market, which worked very well. It was the one where he wrote "just setting up my twttr" fifteen years ago, and it fetched more than $2.9 million from the winning bidder, Sina Esta. With this transaction, a new standard was set for digital collectibles, and most importantly, the money went to GiveDirectly to help Africa's response to COVID-19.
But, the active wallets that participated in Non-Fungible Token (NFT) trading decreased by more than 17% between the second and third quarters of 2022, as reported by Statista. Also, the average price of NFTs decreased drastically by 87% between April 1 and September 30 of the same year. The falling price of Ether and a general lack of interest in digital assets are to blame for this huge drop in value.
These stats show the uncertainty of the NFT market to some extent. Know the market's ins and outs if you want to be a part of the NFT community and digital art.
Reasons Against the Argument "Are NFTs Dead?"
Here are five compelling arguments for why NFTs are not only alive and well but also poised for even greater success in the future.
1. Temporary Effects of Inflation
NFT market players, beware! Inflation is a game-changer that makes things like gas and stocks more difficult to buy and sell. With inflation skyrocketing at a dizzying 8%, people's wallets are getting tighter, leaving them with less money to invest in NFT.
But the US Federal Reserve and international rules try to keep inflation at a good rate of 2%. A perfect storm of global crises, like the COVID-19 pandemic and the Russo-Ukrainian War, have led to inflation that is not even close to what would be ideal. As a result, NFT trading volumes have taken a hit.
Despite whispers of the NFT industry's demise, it's far from over. The NFT market is estimated to be worth a staggering $800 million to $4 billion, and smart investors are hanging tight. Inflation may have taken a toll on prices, but it's a temporary setback.
2. Investment of Big Companies
Nike, the brand we all love, is taking over the NFT world by launching its Web3 platform, Swoosh. Named after their iconic logo, Swoosh is the marketplace for all things Nike and NFTs.
Buying Nike NFTs has always been challenging, thanks to its partnership with Polygon. With an ETH or MATC token-filled digital wallet, you can dress your virtual self in the newest Nike shirts and shoes. And the best part? Nike is making sure that NFTs are accessible to everyone, with plans to sell its first digital sneakers for less than $50.
Early 2023 will see the release of Nike's first NFT apparel line, and the brand has already raked in over $90 million in NFT sales through the Swoosh. It's clear that Nike is fully embracing the future of NFTs, and we can't wait to see what they come up with next.
3. Trend Of Bored Ape's NFTs Is Still High
The Bored Ape Yacht Club is still one of the most talked-about NFTs on the market. Its 10,000 unique and customizable cartoon apes keep people interested. Two years ago, the series skyrocketed to fame when a Bored Ape sold for an astounding $3.4 million!
Despite the average price of Bored Apes dropping, many command prices upwards of $100,000. Last November 24, Bored Ape #232 sold for a whopping $1 million. While some Bored Ape Yacht holders may need help offloading their high-value NFTs, the popularity of the Bored Ape Yacht Club is on the rise. With nearly 10,000 searches in the past month, the Bored Ape Yacht Club remains one of the hottest topics in the NFT world.
4. Gaming and NFTs Will Evolve Together
The current slowdown in volume and sales may be attributed to inflation. However, it's also likely due to the fact that the gaming industry is still getting to grips with the limitless potential of the NFT marketplace. During the last crypto bull cycle, there were a lot of games with NFTs that got a lot of support from players. The fact that games with NFT were well received in the past is a good sign that this will continue in the future.
Games like Metaverse offer the ability to play for money, while NFT-based games like Alien World and Bomb Crypto take the experience to the next level by operating on the blockchain. Players can get a real-world valuation through their crypto or NFT project gameplay.
Most gamers have said they want to use cryptocurrency and digital art in games, and game studios are eager to learn more about how to make money with cryptocurrency. Players stand to gain a lot, such as a wide range of options, access from anywhere in the world, fast transactions, and privacy. And an NFT marketing agency can further help NFT creators.
Is the NFT Market Set To Recover?
Like all markets, the NFT market goes up and down and is affected by many different things. Expert predictions and opinions on the NFT market differ.
Some experts say that the NFT market will continue to grow and change, while others think that it might slow down or correct. The truth is that nobody can predict the future of the NFT market with certainty.
NFT marketing strategy remains an essential factor in the NFT market. Companies and people who can use their NFTs strategically to get the most out of them will be in a good position to succeed. Using NFT marketing services like social media channels, influencer marketing, and content creation from NFT marketing agencies can help get the word out about NFT projects or products.
As new technologies come out and people come up with new ways to use NFTs, the market could see a comeback. If you want to invest, research thoroughly and understand the risks involved, then make informed decisions based on your financial goals and situations.
The NFT market has gone through many ups and downs due to the high inflation rate. However, the future of NFT is still looking bright. With the investment of big companies like Nike in the NFT world and the popularity of Ape Yacht Club, the worth of NFTs is estimated to be between $800 million and $4 billion. The gaming industry is also growing and changing. NFTs are being added to games, which players like.
According to experts, the current slowdown in volume and sales may be temporary, and NFTs are far from dead. The utility NFT is now becoming popular, and soon, NFTs will be used in multiple other industries. It is an exciting time for the NFT world as more people get involved in the market. With its decentralized nature, there is immense potential for the growth of the NFT industry!