Nfts
NFTs are not dead yet but are only evolving despite sinister measures in recent months ⋆ ZyCrypto
After enjoying an exceptional start to life in 2021, enthusiasm around non-fungible tokens (NFTs) has waned, sparking a wave of speculation that the asset class has seen its death knell.
While a significant portion of the investing public clings to the idea that NFTs are dead, executives building with digital collectibles argue that the ecosystem is simply going through a correction. The dark price bottoms are being interpreted as growing pains for NFTs, signaling a much-needed evolution for the asset class.
Founder of video platform RECRD, Anoir Houmou, says NFTs are simply evolving beyond the hype and buzz they had in 2021 into an era of real-world application and sustainability.
“Recent trends indicate a maturation of the market after the explosive growth seen in recent years,” Houmou said. “We are entering a phase where the focus is on sustainability, real-world utility, and integration into larger technology ecosystems. »
Houmou argues that the ecosystem is ready to welcome a new wave of institutional investors, tailor-made for practical solutions with real-world utilities. For the executive, key practical use cases for digital collectibles include granting event access rights to holders, subscription use cases, environmental sustainability projects, and public services related to retail, fashion and education.
Other experts are pitching their tent with NFTs, citing a the integration technology with the Bitcoin (BTC) blockchain via Ordinals. Since their launch, sales of Ordinals have soared to $675 million despite declining statistics for other digital collectibles, with experts pointing to a new era for NFTs.
“With Bitcoin-based NFTs recently seeing sales volumes of $148 million and Bitcoin being one of the top three blockchain networks for NFT sales, this signifies strong NFT sentiment,” said Oh Thongsrinoon, CMO of the Web 3 Altava company.
Faced with the question of falling price floors, NFT executives rationalize the trend as simply a market correction common in the life cycle of every emerging asset.
“NFTs are no longer just collectibles, but tools of digital ownership and utility,” said Toshiuki Otsuka, founder of SNPIT. “Market corrections are normal and signal maturation. »
The Grim Numbers Surrounding Digital Collectibles
In 2021, NFT sales totaled an impressive $18 billion, driven by collectibles like Bored Ape Yacht Club and CryptoPunks and the impressive $69 million purchase of Beeple’s digital art.
As 2022 wore on, enthusiasm for the asset class began to wane with the Numbers painting an even bleaker picture for 2023 and 2024. In the first quarter of 2024, NFT sales were $4.1 billion, but by the second quarter, that figure had dropped 45% to $2.9 billion, suggesting gloom for the ecosystem as a whole.
Analysts are rationalizing the recent monthly decline in digital collectibles with BTC’s recent lackluster performance over the past two weeks. Despite an overall shaky outlook, NFT sales on Solana, BTC, and Ronin are still on the rise, giving enthusiasts a measure of hope for better days ahead.