You might be aware of the potential for a stock market meltdown, and it has kept people asking, “Is NFT Market dead?”
I really hope that doesn’t occur. NFT, however, might have defeated the Dow Jones. NFTs are indeed dead, as seen by the current NFT market fall.
NFTs (Non-Fungible Tokens) are digital assets that are integrated into blockchain or cryptocurrency financial services for those who are unaware. It was anticipated in April that between 2021 and 2026, the population will rise by 147.24 billion.
That didn’t exactly work out.
NFT Market Analysis
NFT trading volume has reportedly decreased 97% from its high in January, according to a Bloomberg headline. It wasn’t simply a bad headline, either. It increased from $17 billion in January to $466 million in September, as was stated in the article. According to a Reuters article, NFT sales decreased by 60% from the second quarter to the third quarter. NFT average sales also increased 92%, falling from $3,894 in May to $293 in July, according to one analysis.
What’s wrong with a market that was once flourishing and promising? Inflation, like many other things in life, had a role in the NFT market’s collapse.
Market observers probably shouldn’t be surprised by bad news. Federal Research increased the federal fund’s target rate from 3% to 3.25% in late September in response to the continued inflation issue. This is the year’s fifth increment. Following the Fed’s pronouncement, Time magazine predicted a wild ride for Bitcoin below $19,000, its lowest level since June. In response to comparable announcements in March, May, and June, the price of Bitcoin dropped by more than 10%. After the July migration, it also fell. Not really that horrible though.
Cryptocurrencies are unstable assets, just like the stock market. The NFT market is susceptible to being adversely impacted by an increase in the Federal Rate. There may not be a timeframe for when inflation stops; therefore, it’s unclear if and when the crisis will end. The NFT market is currently unstable.
So, are NFTs dead and useless? It’s past the point of technically taking them over, but you probably don’t need to place a significant gamble on the NFT market right now.
5 Reasons Why NFTs Are Not Dying, Yet?
1. Inflation Only Crashed NFT Prices But Didn’t Kill Them
One of the key factors causing unrest in the NFT market is inflation. Most commodities, including equities and many significant commodities, including gas, are impacted. Consumers will have less money to buy and invest in NFTs as inflation rises. The trade volume was reduced for this reason.
The Federal Reserve wants to see annual inflation at 2%, which is considered to be healthy. This expression is accepted everywhere. With inflation at 8% right now, I feel awful. Major worldwide crises like the COVID-19 epidemic and the Russo-Ukrainian War have made inflation worse.
Some people have even asserted that the NFT market has collapsed this year, but that is untrue. Although inflation has an impact, the NFT market is still quite attractive. According to estimates, the NFT market is worth between $800 million and $4 billion. NFTs will remain in the hands of investors until the economy has stabilised.
The impact of inflation on the collapse of the NFT price is not indicative of market potential. The interest in NFTs is actually only increasing. Businesses desire to use NFTs for more extensive commercial uses. The cost of NFT technology will undoubtedly increase once it becomes commonplace.
2. Nike NFT is Only Beginning.
Businesses like Nike are thinking about utilising NFT technology to market their brands. The sportswear firm just made the announcement that its own Web3 platform is now live. The Swoosh, which is named after the emblem, makes Nike NFTs accessible to all.
Swoosh is an online store that sells various virtual Nike products made with Polygon NFTs. Utilising the Polygon blockchain, these NFTs. The Nike and Polygon agreement make it simple for anyone to purchase NFTs. Customers can buy Nike apparel for their digital alter egos, including shirts and sneakers. Create your digital wallet immediately using ETH or MATC tokens. Nike makes the most of the NFTs’ practical potential.
Beginning in early 2023, this platform and the initial Nike NFT clothing collection will be retired. The answer to the question of who can afford these novel NFTs is: Everyone!
Nike intends to keep the price of this digital shoe under $50. With Swoosh, the company has already made more than $90 million in NFT sales. It’s obvious that we want to live in a world where NFTs are common.
3. Bored Ape’s NFTs Are Still Popular
One of the most well-known NFTs on the market is the Bored Ape Yacht Club. Two years ago, the 10,000 cartoon monkeys series of custom work was wildly successful. With $3.4 million and an additional $1.7 million in 2022 made on Bored Ape sales, it’s still relevant.
There are still many Bored Apes valued at over $100,000 even though the average price has decreased. Sales continue to be common. On November 24, 2022, Bored Ape #232 was sold for about $1 million. Some owners of Bored Ape Yachts find it difficult to sell their pricey NFTs. It is not, however, evidence that the NFT market is dead. Nearly 10,000 people have looked up the Bored Ape Yacht Club online just in the past month.
4. Twitter is Acquired by Elon Musk
On Twitter, the NFT community is thriving. One of the most popular platforms for integrating NFT technology is Twitter. NFT profile picture was a new account feature that Twitter revealed at the beginning of 2022. Subscribers to Twitter Blue can display their NFT in a hexagonal profile frame. Additionally, a user receives a confirmation and a blue checkmark with a premium subscription. This gave NFT aficionados a simple forum for talking about NFTs.
CEO of Tesla, SpaceX, and other companies, Elon Musk added the CEO of Twitter to his resume. Musk finished buying the platform for $44 billion in October 2022.
The billionaire has publicly professed both his hatred and affection for NFTs, but many believe that he is actually a fan in secret. It is even rumoured that he recently purchased a Bored Ape NFT. The information makes it obvious that Twitter wants to incorporate electronic payments.
Musk’s transition to CEO of Twitter hasn’t gone well. Twitter message searches are becoming more popular as a result of user complaints. The acquisition will make the platform more well-known. To increase public knowledge of cryptocurrencies and his NFTs, any publicity will do.
Twitter might serve as a market for NFTs. NFT Tweet Tiles is a feature that is still under development. Users will be able to view, buy, and sell their NFTs via Tweets as a result. Twitter will collaborate with four additional NFT marketplaces to do this.
Users have access to a large variety of NFTs from Magic Eden, Solana, Rarible, and Dapper Labs. The NFT market will attract increased interest, thanks to Elon Musk’s excitement for innovation on Twitter.
5. Blockchain and Games Are Developing
Few people are aware of how versatile NFTs are. NFTs have enormous promise in the gaming sector in addition to as works of art. Inflation is the cause of the market’s current volume and sales stagnation. Another reason could be that NFTs are still being introduced in the gaming sector. Numerous games that used NFTs received positive feedback during the last Crypto Bull period. Axie Infinity is an illustration of this, where users can gather pets to engage in player-versus-player combat. Future success is predicted by the previous cycle’s success.
Digital assets used in games include character skins, weapon skins, and exclusive items. NFTs are among the already-available paid games in the Metaverse. According to the blockchain, NFT games like Alien World and Bomb Crypto are also available. By playing, users can acquire real money in the form of NFTs or virtual cash.
Using cryptocurrency in their games is something that the majority of online players are interested in. Game development companies are increasingly implementing cryptocurrency monetization techniques. Players gain a variety of advantages. This includes global accessibility, rapid trading, a diverse portfolio of cryptocurrencies, and anonymity.
Are NFTs Still Worth It?
You’ve read news stories about people trading NFTs for thousands or even millions of dollars. These products make it competitive to enter the NFT business. It is also challenging to believe in the long-term success of NFTs, given the current downturn market. However, if you dig into the actual statistics, you’ll discover that sometimes the benefits outweigh the risks.
Additionally, to invest in NFTs, you don’t need to be a millionaire or have a sizable savings account. There are various affordable participation options. The state of the market at the moment does not conclusively show that NFTs are failing. Our argument, however, shows the exact reverse. NFT will have a presence on several well-known platforms and has a place in Web3’s future.
The possibilities with NFTs are unlimited, from the new Nike NFT collection to Metaverse games. They are being developed for commercial use, and the market for them will soon grow. NFTs are worth the risk, much as investing in cryptocurrencies and stocks. You can choose to pursue your interest in NFTs as a serious financial decision or as a hobby. You are also welcome to develop your own NFT project. NFTs are a fantastic way to get engaged with Web3 development, in any case.