THE BIG QUESTION ARE NFTs DYING ?

by Rohan

The non-fungible token (NFT) market has recently encountered numerous difficulties. The NFT market surpassed the NFT boom of 2021, which peaked in August with $4.2 billion in trading, reaching an incredible high of $17.2 billion in January 2022.

However, since the beginning of this year, the industry has experienced a significant slowdown, and analysts have decreased their estimate of the size of the NFT market by more than $2 trillion. The trading volume was $466.9 million in September. These falls aren’t impossible, but they can be a genuine cause for alarm. There are indications that this decline is a step toward NFT maturation. Since the beginning of August, the market has fallen precipitously, from 20 million dollars at the beginning of the month to 2.8 million dollars today on the NFT market. 

ARE NFTs DYING ? 

According to recent NFT cryptocurrency news, Are NFTs dying ? Everyone has this question. The NFT market is highly unstable, but many long-term investors believe the technology is ground-breaking and opens up a wide range of opportunities. While some NFT initiatives have failed, others have broken over a billion in sales, demonstrating that NFTs are a viable business model. Large NFT marketplaces like OpenSea continue to see an increase in the volume of transactions that take place there. When comparing August of 2021 to August of 2020, OpenSea’s transaction volume increased 1,000% in just 30 days.

Projects like CryptoPunks, which debuted in 2017, at the start of the NFT history, have sold more than $1.2 billion in total. The idea has even received investment from companies like Visa, and the going rate for a punk is currently half a million dollars.

Mark Cuban, a multibillionaire investor, is a strong proponent of NFTs. Entrepreneur Garvy Vaynerchuck, who has a track record of accurately predicting trends, is also a fervent proponent of NFTs. Many celebrities invested and associated with NFT. 

Digital works of art are currently being sold at the biggest and most prestigious auction houses for fine art, including Christie’s and Sotheby’s. For instance, Sotheby’s recently fetched US $24.4 million for a collection of NFTs from the Bored Ape Yacht Club.

When Beeple sold “Everydays, the First 5000 Days” for $69 million, Michael Joseph Winkelmann, created art history. Recently, GQ named him as one of the “Men of the Year 2021.” The way art is marketed is evolving, and the fact that Beeple is on the list is evidence of how the NFT market is expanding. Are NFTs dying ? Everyone has this question. These are three important reasons why NFTs are still in operation.

Three Reasons why NFT are not dying

1.Not Decreasing of the floor price of NFT

Over the years, a lot of NFT projects have been published and have kept their worth. The Bored Ape Yacht Club (BAYC), also known as the Bored ApesNFT group, is one of the two most notorious examples. You will see that the floor price is still 95 ETH if you visit marketplaces like OpenSea. According to CoinDesk, the price of Ethereum at the time of writing was $1,580. Another good example is CryptoPunks, where the floor price is still 50 ETH.

2. Numerous Application Integrations

The three biggest social media platforms, Twitter, Reddit, and Instagram, have recently implemented NFTs or made announcements about doing so soon. Furthermore, millions of people use these networks every day. NFTs will once more experience a boom in popularity and value thanks to widespread adoption and extensive application integration. After all, joining that small group of owners is the main reason some individuals purchase NFTs. They may effectively promote the initiative and maintain the value of their NFTs by showcasing them on their social media platforms.

3. NFTs in the gaming sector

Blockchain technology is being used to create a variety of games, particularly after NFTs become popular with the general public. There are thousands of play-to-earn games using blockchain technology, and there are yet many more to come. These games usually award the player with native cryptocurrency token, also known as an NFT, for participating in the game and becoming proficient at it.

Finally, this will result in a continuous demand for NFTs from game developers and players who want to finish a collection or an in-game assignment.

What is the Future of NFT ? 

Since the NFT market is now going through some hard times. Without a market, artists developing NFTs are unlikely to experience sales because the market operates on the principles of supply and demand economics. Despite this, the number of transactions on NFT marketplaces is increasing. Well the future is unpredictable, but most people focus on one conclusion, let’s look at two possibilities. We can’t say clearly are NFTs dying . 

Possibility 1 : Slow Market Stabilization

New innovations are frequently dismissed by the public as mere illusions. That was the situation in the 1990s when the internet first came up. Similar to how traditional investors dismissed cryptocurrencies and NFTs at first, The market is booming right now, and we can observe its tendencies. Regardless of what occurred to NFTs, the NFT market may be going through a similar experience, but a recovery will eventually take place. Numerous events could reignite attention if the initial buzz is starting to fade.

Possibility 2 :The market crashes

Some industry professionals are still pessimistic about the future of NFT and think it is a bubble that will eventually pop. Due to the present hysteria, JPEGs are now being sold for millions of dollars. with all the fresh musicians and financiers making money. A digital snapshot is still simple to duplicate and make perfect replicas of, unlike real, physical artworks. This idea continues to be a minor detail that will not impede the development of NFTs. Legacy and non-traditional investors continue to disagree on NFTs. And due to the initial buzz is starting to fade in time, we won’t just buy and sell art with NFTs.

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