Nfts
What would it take to see an NFT revival?
In recent years, digital currencies have been all the rage. However, the idea that digital assets are exclusively a form of currency is gradually being abandoned as different use cases emerge and are rapidly adopted. This can, Fintech time seeks to showcase some of these new methods and explore the evolution of the digital asset ecosystem.
Non-fungible tokens (NFT) took the world by storm in 2020 and 2021, as seemingly everyone was discussing the relatively new concept, and some spent significant amounts of money to become sole owners of NFT art. However, it didn’t take long for the bubble to burst and the hype to die down.
The value of most NFTs saw a significant reduction as interest in the concept rapidly declined across the world. However, in recent years, behind the scenes, some developers have continued to leverage the technology for other use cases.
But can NFTs really make a comeback even at half the popularity seen a few years ago? To find out, we asked industry leaders what it would take for us to see an NFT revival.
“It’s not what we had before,” says Martin Goycoolea Scottproduct manager and builder of the DeFi wallet Zealous. “The problem with NFT artwork or NFT profile photos is that they are by definition rare, exclusive and limited. We need NFT use cases that transcend the membership or club experience in a way that facilitates ownership of digital or physical products. I bet financial instruments (real world assets) or games will make NFTs more mainstream.
NFT and crypto are linked
Where cryptocurrencies succeed, NFTS will too, according to Karen Jonesfounder and CEO of Wealth of the citythe wealth management platform.
“NFTs work side by side with crypto which in 2024 records bitcoin at over $70,000, an all-time high, so a revival will be accompanied by rising prices. NFTs are primarily a marketplace for people who understand crypto and are motivated by technology and art.
“Some of the most expensive NFTs pretend to reference financial trading memes like the Bored Ape Yacht Club, so they have always remained in the background, but the humble NFT has now morphed into other positions , giving it a “revival” in new places. It evolved into a “token” and tokenization as well as a spot. BTC ETF have now gone through banking institutions.
“Damien Hirst use a digital business Heni has continued through the ups and downs of the NFT world with its digital “twins.” See him using NFT terminology to “burn” real-world artwork (assets) when he sold artwork and asked the buyer to decide – digital or real-world physical. Turning NFTs and art into theater and fire.
“There is no doubt that museums will also see the benefit of digital twins for large art exhibitions and artists. Imagine taking a limited edition Mona Lisa home on your phone? The financial fundraising opportunities are endless.
Real-world assets are the “new NFTs”
By adopting another use case, NFTs have already started their own revival, says Billy Sebellexecutive director of XDC Foundationan open source blockchain protocol specializing in the tokenization of real-world assets (RWA) and decentralized finance.
“In a sense, NFTs are already experiencing a revival. RWAs are the new NFTs. Through NFTs, we know that by digitizing a real-world asset on-chain, that asset becomes tokenized and its ownership rights can be held, traded, or used as collateral for other investment instruments.
“With increased confidence in the capabilities of blockchain technology, fintech innovators will create high-demand RWA projects in areas that extend beyond the current landscape.
“RWA tokenization will solve problems in large sectors such as trade finance, where the $5 trillion trade finance gap has long prevented micro, small and medium enterprises (MSMEs) from participating in global trade. “
“NFTs could become essential tools”
Bryan GirlDirector of Global Public Policy at a global non-profit industry organization based in Switzerland BSV Associationalso suggests that a change in use cases is exactly what the space needs to return to success.
“For an NFT renaissance, the focus must shift from speculative trading to an emphasis on practical utility and tangible benefits. NFTs could become essential tools for various interactions and transactions in the digital and physical domains.
“For example, they could provide exclusive access to events and content, represent ownership of tangible assets such as real estate, enable unique experiences for fans and consumers, and facilitate the security of identities and memberships digital.
“By improving their functionality and integrating them into everyday activities, NFTs can achieve sustainable growth and wider acceptance.”