Are NFTs Dead? The Answer May Shock You
No one really knows what’s happening with NFTs right now. What we can see, is that the NFT markets have taken huge blows and the trend is very volatile right now. It begs the question, “are NFTs dead?”. No one can say for sure, we can only refer to examples from the past where value can skyrocket or depreciate. Let’s take a closer look at the fate of NFTs and future NFT drops.
Are NFTs Really Over?
People in the crypto community have been in a frenzy for the past year or so with analysts and traders predicting different futures. Should you empty your portfolio or dump more into Bitcoin at the low value it is right now, hoping it will go up?
We understand if you’re Logan Paul, who purchased a non-fungible token for over 600K, and the value of that NFT has plummeted to $10, that you would think NFTs are surely dead. However, there are analysts who examine the floor price of Bored Ape, and saying that the fact that they are remaining at around 100K bodes well for the future of NFTs.
The data shows both sides of the argument. Since there is high inflation right now everywhere in the world and so many things have gone up in price, we understand if people and companies do not want to dump excess money into something iffy.
So, are NFTs really over? We personally don’t think so, especially since the NFT industry is in its infancy and we firmly believe in the use cases it has in the future, such as assigned utility.
How to Increase Demand
There are ways people can help increase the demand for NFTs to boost sales volume.
Fractionalization in NFTs means the same thing as fractionalized stock in the stock market. Since NFT trading volumes seem to be sinking, there is an option of breaking down digital assets into smaller and more affordable parts.
For example, take NFT projects that are incredibly expensive, like Bored Ape Yacht Club (BAYC). Not everyone can fork over a few hundred thousand dollars, so breaking up the NFT into smaller pieces each costing just a few thousand, you will lower the threshold for investors.
The next step we can take is to tokenize the digital asset in another effort to boost NFT sales. You can tokenize physical assets such as music and even real estate. We can see some music artists do this with their tracks. In the NFT revolution and an NFT bear market.
Real Estate, Fine Art, Music
Certain tokenizable assets that can make pretty expensive NFTs include the above. Let’s take a look at fine art non-fungible tokens. There are platforms at work in the NFT marketplace trying to tokenize famous artists’ work into NFTs. Iconic blue chip artworks can be represented and bought as NFTs and fractionalized as investments.
Music is another industry that can benefit from real-life music turned non-fungible tokens. You can purchase songs from up-and-coming or famous artists on an NFT marketplace, which can help drive NFT sales. The more demand there is in the NFT industry, or any industry, the higher the value of the assets.
Crypto Tokens to Short
There are a few tokens right now that plan to short to combat the NFT market slump. Immutable X, Flow and Tezos, all blockchains that focus on NFTs, are in danger of losing over 90% of their value (thanks to inflation).
Immutable X has a partnership with GameStop, a famous gaming retailer. It is a layer 2 solution with a concentration on NFTs, which is why it is suffering from the NFT market crash.
The next crypto token to possibly short is Flow, who has partnerships with the likes of the UFC, Samsung, and the NBA. Finally, we also have Tezos, which is another blockchain that focuses on NFT projects.
• What is the future of NFTs?
The future of NFTs is unknown. There are people on both sides of the argument with valid points. NFT trading has indeed decreased and the market value has also reduced since the first wave, but the future is yet to be written and sales could hit the millions again
• Can NFTs make a comeback?
Yes, NFTs can make a comeback. The market is volatile, but it could definitely go the other way. No one knows what can happen in the future, and your digital assets can more than likely come back and even appreciate in value.
Are NFTs dead? It really remains to be seen. We can only go off of the data we have now, which is low trading volume, which makes it a little risky to invest. You don’t want to be paying thousands of dollars without any profits in return, However, this is the game of the trade and the trade volume can certainly return.