NFT crash? NFT market crash?
I believe this has been running through our minds lately, like the fact that the stock market and crypto market are declining in valuation, will this also affect the NFT market?
This week already, the NFT market sales have seen some gradual decline, unlike the previous exuberance market era.
This would have been predicted by people who never believed in NFTs and their concept.
Although NFTs are minted on crypto blockchains making them subjective to the crypto market too. Since the crypto space has been experiencing some sideways movement, and unfortunately a bearish movement, it will be a problem too for the NFT market in general.
Nonfungible token skeptics have gained the conviction that their opinion might be true since things are going toward their prediction.
Remember during early March, the average price of an NFT was not more than $2000.
Pushing the price from a January high of $6800 to $2000 now. Are nonfungible tokens unsustainable?
Or is it a normal market trend?
According to coinmarketCap, the market capitalization of NFTs has gradually reduced from 23billion dollars to about 10 billion dollars.
Although, the fundamental factors of the market and the regulations from the security and exchange commission (SEC) can be traced to be the cause.
NFT critics might be happy seeing this, as they always said NFTs are just bubbles that won’t last long.
Are they getting burst at the moment?
Remember, Non-fungible tokens are digital data minted on blockchains for rarity and authenticity. Their use cases have proven the reason for the high amount of prices they are sold for.
Looking at renowned institutions and celebrities investing in nonfungible tokens. It will give you a better view of how nonfungible tokens will gain much ground in the long run.
No matter the decline in NFT sales, NFT gaming and tech platforms are not worried, as they are still planning on what the future holds for NFTs. Square Enix a gaming developer has let some things go to obviously focus on NFT gaming.
To answer all questions about the NFT crash or NFT market crash, this article will lay down some areas to be touched by NFT developers to deepen its ground and strengthen its relevance with or without crypto.
NFT crash? What to note
The NFT developers need to do some work in other to sustain the value of nonfungible tokens.
Do it with or without crypto
Early nonfungible tokens gained massive attention through blockchain technology. With this nonfungible tokens are created, minted, bought, and sold with cryptocurrencies. So, the early nonfungible breakthrough was attained through the desires of many crypto enthusiasts and investors. But if nonfungible tokens will want to expand their adoption, then it requires to shift from the crypto hallway to a broader financial system, since it’s not everyone that believes in crypto. So expanding the adoption of nonfungible tokens will require NFT developers to shift to the non-crypto audience.
People might want to harness nonfungible tokens, but because of their opinion toward cryptocurrencies, they halt.
Pitchbook revealed how Opensea, the world’s largest NFT trading marketplace, is trying to act on this idea, to allow NFT buying and selling of NFTs to be done with traditional currencies like fiats.
The issue of crypto is not a bad idea, but keeping it solely on crypto might be. Since you want massive adoption of NFTs, bringing to only crypto savvy is not nice after all, but bringing it to the whole audience will guarantee massive adoption.
Rarity and authenticity will not always hold for nonfungible tokens for the long term. Added or enhanced value will be a more momentum giver for nonfungible tokens.
Although NFTs seem to be more promising in the long run, bringing some reasonable values closer will authenticate the future.
With this, an added value from the blockchain beyond aesthetics and rarity will be greatly appreciated. NFT gaming is a great step toward this, others can come in also, to solidify the NFT space.
Incorporating NFTs into messaging, social media, payments, and rewards will do.
In the crypto space or in blockchain technology, utility is a driving force, and utility is achieved through advanced technologies. Advanced technology will see the current problems in the NFT space and be able to bring solutions. Ethereum has been a solid ground for NFT mintings, but better layer 1 currencies are available with higher transaction speeds than Ethereum. Also, having NFT transactions done across different blockchains will require advanced blockchain technology. For example, creating an NFT transaction bridge, where an Ethereum-linked NFT can be bought with Solana with ease. It will help to reduce stress by trying to convert your Solana into Ethereum, before buying the NFT.
With this, a devoted team is needed with a supportive fanbase, to be able to drive effect with patience.
Should I still buy NFTs?
This article didn’t put a stop to the buying of NFTs as we are only concerned with the future of NFTs.
The use cases of NFTs have been detailed in our previous article, and the call to answer the trending questions about NFTs was answered.
NFTs are still trending with diverse updates in the NFT space, buying and selling for profit is not a bad idea. The only issue is knowing the right NFT project to venture into.
There are numerous amounts of NFT projects online and we are concerned about how sustainable they can be, in the long run. Therefore, investing in NFTs is just like all other businesses, as you can either lose or make profits. So, trade at your own risk as this article is for informational purposes and not financial advice.
If you have your bias about this post, don’t hesitate to drop your comments below and expect an immediate reply.
Nonfungible tokens are still getting polished, and the tendency of falling is low with the height already attained in the space. However, major work is to be done as discussed above to make things work or to push the future a little bit closer.