Nfts
Are NFTs still alive and will NFT.NYC be back in 2025?
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This year, NFT.NYC was different. Since its launch in 2019, NFT Enthusiasts and industry players gathered here to learn about the latest trends and innovations in the field. The event aims to celebrate the impacts and potential of NFTs with a clear mission: to drive their adoption by the general public. As such, the level of enthusiasm and investment around the event can be seen as a barometer of the state of the NFT landscape, and this year’s event was quiet.
Much less capital was spent on activations and booths, and the show felt quiet, even more so than the 2023 event, which itself was noticeably quieter than 2022. There were still some interesting projects, but the energy was lacking and it was very different from the enthusiasm and conversations I’ve had at recent events like Token2049 Dubai and GDC.
Are NFTs Dead?
In 2021, NFT.NYC was a remarkable spectacle that was dubbed the “Crypto Coachella” And “super bowl” of the NFT world. Driven by immense excitement and anticipation, it has captured attention from all corners of the world with its dazzling celebrity endorsements, extravagant marketing campaigns, and mind-blowing multi-million dollar art sales that lit up the billboards of Times Square. The event reflected the thriving market as trading volumes jumped That said, this era was also a reflection of speculation and the blind pursuit of profits that led many users to get burned by the greed of bad actors and projects lacking substance.
So, does this shift mean that NFTs are dying? Not at all. This year’s event reflects a positive shift within the crypto industry. NFTs have matured: they are no longer a speculative fad, they have been integrated into the broader verticals of the crypto industry, making an event focused on NFTs unnecessary; people have moved on to discussing tokenization in gaming, finance, real estate, etc. NFTs no longer need to start their own infrastructure; instead, they can leverage the robust systems and scalability offered by established crypto ecosystems.
Changing Tides
What changed? The NFT market crashed during the crypto winter of 2022. Digital collectibles, as a use case, claimed the term “NFT” and became the only application on everyone’s mind when they thought of “NFTs.” Their association with “expensive digital images of monkeys” and overpriced JPEGs gave the industry a bad name. Without the aggressive speculation that drove them, digital collectibles are no longer as popular; the feverish buzz around collectible NFTs has faded.
Total number of sales involving NFTs in the art sector worldwide | Source: Statista
According to StatistaThe volume of NFT sales in the art sector declined by more than 30% from April 2021 to April 2024. The slowdown in October 2023 saw the NFT market experience a significant decline, causing prices to plummet to record lows, marking an 83% decline. decline from its summit.
Maturation of the NFT market
The purpose of NFTs has changed, and we need to reclaim the term outside of collectibles and move the conversation to practical use cases.
One of the most exciting is the tokenization of financial and real-world assets. By December 2023, the total value locked (TVL) of tokenized RWA exceeds $6.5 billion. The financial sector is leading the adoption of RWA through the tokenization of financial instruments. This year, we have seen players such as Blackrock and Franklin Templeton take action.
People are also excited about the prospect of tokenizing assets to represent ownership assets, including real estate, art, stocks, and more. Think of dividing a real estate asset into tokens. Fractional ownership of property is now possible. For example, if 1,000 tokens represent 1% ownership each, investors can engage in trading these tokens on blockchain platforms, improving liquidity and streamlining ownership transfer processes.
In the realm of video games, NFTs have redefined digital ownership, allowing players to truly own virtual assets such as characters and weapons. These NFTs can be bought, sold, and traded on dynamic marketplaces, generating real-world value, especially when “dynamic” NFTs are used, allowing the player to upgrade their items as they are used in-game. Cross-platform compatibility adds to the appeal, allowing for seamless transfers between games (although there are other challenges to solve in this area before this becomes mainstream).
The shift from hype and speculation to integration into the broader crypto space is clear evidence of the maturation of NFTs. This transformation brings enormous benefits, such as leveraging existing infrastructure, scalability, and fostering collaboration and innovation. As NFTs continue to diversify and find new applications, their role within the crypto space will only solidify. The future of NFTs is full of promise, as their continued growth and integration paves the way for a thriving ecosystem.
Alun Evans
Dr Alun Evans Alun is a co-founder of LAOS Network. With over 20 years of experience leading and designing games and technology companies, Alun is an expert in creating innovative products that solve experience and developer challenges. In addition to running LAOS Network, he is the CEO and co-founder of the company that created LAOS, Freeverse, which focuses on building scalable blockchain infrastructure. Alun also led Shar3d.io, a pioneering company enabling collaborative 3D web applications, and was CTO of Bodypal.com, a virtual clothing service company. He holds a PhD in Medical Physics from University College London.