Against the background of a significant drop in trading volumes on NFT marketplaces and a decrease in the cost of non-fungible tokens of popular collections, members of the crypto community started talking about the fact that the NFT market is dying. However, not everyone agrees with this idea.
In this review, Markets Xplora presents five compelling arguments that support the notion that the NFT market is here to stay.
Here are the five reasons why the NFT market is poised to thrive:
- NFT technology is more useful than it looks
- You can make money on NFTs
- NFT projects go beyond their boundaries
- Big companies and celebrities are interested in NFTs
- NFTs are already integrated into the market
Now, let’s delve into each of these reasons to gain a deeper understanding of why the NFT market is expected to endure.
1# NFT technology is more useful than it looks
NFTs, contrary to the opinion of many, are not only pictures that are sold for crazy money on marketplaces. The possibilities of the technology of non-fungible tokens are much wider. For example, with the help of NFT, you can confirm the ownership of real estate or other objects. Also, technology perfectly solves the problem of copyright protection.
It can be assumed that over time, hype NFT projects that “revolve” around pictures will leave the market, making room for the really useful properties of non-fungible tokens.
2# You can make money on NFTs
Non-fungible tokens can be traded. Such properties open up a lot of opportunities for traders to speculate. Artists who create tokens can also earn on NFTs.
It can be assumed that the prospect of generating income from NFTs will not allow non-fungible tokens to become covered in dust and go to rest – somewhere in the backyard of the crypto industry.
3# NFT projects go beyond their boundaries
Many popular NFT projects show growth potential. A prime example is Bored Ape Yacht Club by Yuga Labs. It all started with a collection of non-fungible tokens with pictures of “bored monkeys”. Over time, the project acquired its own cryptocurrency, marketplace, high-profile partners, and also released a number of additional NFT collections.
Today, Bored Ape Yacht Club is not just digital pictures of monkeys, but a whole metaverse. It can be assumed that other projects will follow the example of their “big brother”, thus maintaining the viability of the non-fungible token market.
4# Big companies and celebrities are interested in NFTs
Many large companies have entered the NFT market – from the social network VKontakte to the world-famous manufacturer of sports goods Adidas.
Celebrities are also interested in non-fungible tokens. For example, former US President Donald Trump has his own NFT collections. According to media reports, the politician earned about $1 million on tokens.
5# NFTs are already integrated into the market
Non-fungible tokens have become part of the digital asset market and it will not be easy to “root” them out of it. Many large companies are recognizing the value and legitimacy of NFTs by offering alternative asset management tools to their clients. For example, on the largest crypto exchange Binance, non-fungible tokens can be used as collateral for obtaining a loan.
Conclusion – the NFT market will survive
Ultimately, it is evident that the NFT market is not on the verge of demise, but rather it stands resilient in the face of adversity. Despite the declining trading volumes and decreasing token prices that have sparked concerns, there are robust factors that indicate the market’s ability to not only endure but also flourish.
The NFT market possesses the inherent capacity to adapt to changing dynamics, foster innovation, and seize emerging opportunities. As the crypto landscape continues to evolve, the NFT market remains poised to navigate challenges, redefine its value proposition, and forge ahead with renewed vigor. Therefore, it is clear that the NFT market is far from fading away; instead, it remains poised for sustained growth, cementing its position as a transformative force within the digital realm.