Non-Fungible Tokens (NFTs) are digital assets with unique identification codes and metadata that are nearly impossible to duplicate. NFT technology has had a huge impact on the corporate, sports and art industries.
For example, companies such as GameStop, Adidas, and Disney all launch and sell digital assets in the form of NFTs. Similarly, teams such as Manchester United and his Formula 1 Alpine and RedBull have all made inroads into the industry.
Most importantly, artists have reached new heights in the industry with NFTs. Today, some successful artists are making millions of dollars minting NFTs. However, there are signs that the industry is experiencing some weaknesses. In this article, we will discuss the current state of the NFT industry and whether the market is dead.
NFT market
The NFT market is expected to disrupt the art industry worldwide. The NFT market is Over $25 billion by 2021 This is due to the surge in demand for the token. According to another estimate by Chainalysis, the amount was actually over $40 billion.
This growth was fueled by the popularity of popular NFT collections such as Bored Ape Yacht Club, CloneX and Moonbirds.
Most of these NFT transactions happened on major platforms such as OpenSea, Rarible and Mintable.
In 2022, the collapse of cryptocurrencies has had a major impact on the NFT market. According to Chainalysis, the amount of NFTs sold in 2022 will exceed the amount sold in 2021. The report estimates that the amount of NFTs sold from January to August exceeded $42 billion.
However, there are signs that the hype that existed in 2021 is waning. For example, according to data compiled by Cryptoslam, all chains such as Ethereum, Solana, and Immutable X have all seen volume declines in the past few months. For example, the amount of NFTs sold on Ethereum in August 2022 was his $483 million, below his $3.7 billion in January.
At the same time, companies in the industry are beginning to adjust their operations. For example, OpenSea, the industry’s largest company, laid off his 20% of its workforce.When making announcement, CEO lamented NFT industry passing winter season.
Investing in NFTs
There are many ways people can invest in NFTs.
First, you can buy NFTs directly and sell them for profit. Then you can invest in tokens from platforms that provide solutions to the NFT industry, such as Immutable X, Enjin Coin, and Flow.
Another option is to invest in native tokens released by popular NFT and GameFi companies such as Sandbox, Decentraland and Bored Ape Yacht Club (which recently launched their native cryptocurrency, ApeCoin) and later How to sell them and make a profit.
In both cases, you can do it manually or use automated tools to make a profit.For buying and selling NFTs, for example, there are many NFT bots. SolanaBot, NiftyBot, OpencBot.On the other hand, automated trading of NFT tokens Trading robots such as NFT Profit.
Will the NFT market recover?
There are different opinions about the future of NFTs. On the one hand, some analysts believe the industry will continue to grow as it becomes more mainstream. They point out that NFTs are safe and disrupting the art market. presumed to be worth Over $65 billion.
At the same time, some analysts believe the NFT market will decline significantly over the next few years. They say most NFTs have no intrinsic value, and many who buy NFTs often feel a loss when they sell them. For example, in 2020, Twitter founder Jack Dorsey sold his first tweet for $2.9 million. 2022, same tweet was on sale For just $14,000.
Independent analysts say the NFT industry will survive, albeit on a smaller scale. For example, they note that he has valid use cases for NFTs in industries such as the metaverse and gaming. The Metaverse is an industry that allows people to interact with each other in virtual worlds.
Among them, it makes sense to trade some NFT items. Blockchain projects such as Decentraland and Sandbox, for example, have created virtual worlds where people can purchase virtual assets in the form of NFTs. You can also host virtual events where NFTs are traded.
Additionally, NFTs will do well in the gaming industry. Today, gaming companies generate billions of dollars each year in microtransactions. Therefore, in the future, more and more large game companies will adopt these his NFTs. NFTs also apply to industries such as entertainment and fashion.
what’s next?
NFTs have gone through a cycle that most innovations go through. In the early days, most assets tend to surge amidst the hype and then make significant corrections. For example, most tech companies failed during the dot-com bubble, but many have flourished since. The same thing happened in the early days of cryptocurrencies. Therefore, we believe that the NFT industry has undergone a major transformation and will remain relevant in the future.
