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A $1 Million Bored Ape Sale Tells Us Nothing About the NFT Market

Bored Ape Yacht Club NFT #232 sold for 800ETH. But in reality, BAYC NFT or Cryptopunk sales tell us very little about the NFT market.

On the morning of November 23rd, there was a bit of jubilation on CT (Crypto Twitter for Beginners).rdWhen news broke that Bored Ape Yacht Club NFT #232 was sold for 800 ETH, it was just under $1 million at current prices. That NFT was dead. Of course, few believe the latter statement, but the sale of Bored Ape was heralded as evidence that the NFT market is still booming. In fact, it was framed as a perfect rebuttal to an article posted earlier this year, namely that Bored Ape, which Justin Bieber bought for $1.3 million, is now valued at around $69,000.

But in reality, BAYC NFT or Cryptopunk sales tell us very little about the NFT market. They are industry outliers built on outliers. With or without November 23rdrd BAYC’s sale (another similar fee was paid for BAYC NFT #8585 in early October), the NFT was neither dead nor dying, not even on life support. However, it appears to be a sector in transition, trying to define itself and its future goals.

Interest in NFTs remains high

Although overall sales of NFTs are declining, interest remains strong. Additionally, we are seeing more crossover from web2 to web3 as platforms like Instagram and Reddit embrace digital collectibles. This is no longer just accessible to savvy blockchain developers.Any artist can learn How to make NFTs No coding experience required.

Of course, Reddit and Instagram are pushing NFT adoption on the Web2 platform, but some argue that this is just the tip of the iceberg. Starbucks (Odyssey Rewards) and Nike (.Swoosh web3 platform) are both examples of his future NFT projects that could help drive mass adoption. In our opinion, these are far more important indicators of the market (or future markets) than BAYC NFT’s seven-figure sales figures.

In fact, Starbucks’ initiative to evolve its highly successful Starbucks Rewards program into a web3 and NFT-based Starbucks Odyssey program is perhaps one of the industry’s most significant steps to date. why? Because it’s starting to lead us to what some proponents believe is the holy grail of NFTs: practicality.

NFTs and utilities combine to form a challenge. Trying to praise the virtues of NFTs to relatives at a Thanksgiving dinner is a topic that trips over words. It can be said that it conveys the ownership of , and that ownership is recorded on the underlying blockchain. For beginners, it may not be very impressive.But web3 enthusiasts We believe immutable ownership records can impact every industry.

Increased use cases for NFT technology

For example, let’s take a look at some of the other important use cases for NFTs that have emerged this year. Homes are sold as NFTs in the United States, and tokens are used to record information on a blockchain ledger in the same way lawyers traditionally transfer ownership with deeds. While NFTs and their use cases in real estate are in their early stages (very much so), it is hoped that home buying will soon become faster, more cost-effective, and less susceptible to fraud. increase.

NFT home sales aren’t the only logical use case proposed this year. For example, there are suggestions that legal subpoenas can be signed, sealed, opened, and sent in the form of NFTs. We’ve also seen NFT proposals to protect the privacy of medical records.

Of course there is also push NFTs in gamesrepresents, to some, the most important narrative for the industry. While far more advanced than some of the traditional industry use cases highlighted above, it still marks it as a nascent sector. Sure, some might cite Axie Infinity and other titles as examples of play-to-earning and maturity of NFT games, but the established gaming industry still has a lot to offer. there is room to do things.

Perhaps all this leans towards: We are starting to see segmentation of the NFT sector, which will lead to different growth patterns across different sections. Game-Fi, for example, can explode before Crypto Winter ends. Alternatively, there could be mass adoption of his NFTs for legal and medical use cases like the ones outlined above. So I wouldn’t (and shouldn’t) point to his expensive NFT art sales as an indicator of the health of the industry.

Doing so has as many uses as arguing that the broader entertainment industry (movies, television, games) is in great health because someone paid record amounts for a Spider-Man comic book. The NFT sector is evolving and it will take time. But it should emerge from Crypto Winter, a far more diverse sector than when it entered.

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