The NFT market has made a name for itself in the system. In the era of digital markets and innovations, it is one of the newest and most popular innovations. NFT got to an amazing start last year as it blew past most innovations last year as it reached $25 billion in sales.
Due to its unexpected rise, it earned its spot as the biggest growth since 2017. Though NFTs are suffering because of several factors, the blooming innovation has displayed certain durability and eagerness, unlike some other assets.
Is NFT at the forefront of the Web 3 economy?
Web 3 is the recent adjustment made to the internet for people who don’t know. It is built on Blockchain and Virtual Reality. Since NFTs are among the first creations of web 3, it has created a chance for users to communicate with decentralized markets and also live in a virtually created world. It is slowly gaining ground even though it is an emerging technology.
Nowadays anyone can mint an NFT that serves as a portion of digitized art or collectible, it can also be switched for various crypto assets. So far we have seen different NFTs get sold for different prices, one of the highest so far was sold for $69 million at an Auction, we also have digital collections like Bored Ape Yacht Club which has its NFT valued at 94 ETH ($192,055 as the time of writing).
The volatility of the NFT System
While it has been highlighted as the future of virtual processes, the ecosystem of the NFT market is broken up into pieces. There have been some questionable crypto owners who have made use of the lack of information in the community to their advantage. Those individuals have created projects that have no value whatsoever.
Asides from such shady individuals, some creators are on a spree. Launching different experimental projects, which when they fail would affect the funds of the community’s users. A while ago, a leading NFT project was under heavy fire as it was discovered that its founder had ties with other projects that had failed.
The Future of NFTs
With recent happenings, it is now clear to The community that only projects that have value in the future deserve to be obtained. It is of no value to anyone to mint a collection that has no base value and then release them when the price has slightly increased.
It is most likely that different NFTs that have lasted a while will come back stronger than they were before when the industry finally comes back to its normal state. Projects like the BAYC and CryptoPunks which boast the biggest celebrity investors and influential investors are to bounce back when the market stabilizes.
Disclaimer: NFTs and Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Business Voices content) and the views expressed in these types of posts do not reflect the views of this website. Please read our full disclaimer here.