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- 1 Lately, there have been lots of rumors and speculations about NFTs being dead.
- 2 While its market is indeed down right now, it’s a little early to predict the extinction of NFTs.
People who keep tabs on the crypto updates know about the lackadaisical performance of NFTs lately. The emphatic quote “NFTs are Dead” has done enough rounds on various news channels and websites. If users look closely at the numbers, they might even believe that. So, does that mean that NFTs are going to lose their hold on the crypto markets?
Most crypto news websites published that 99% of NFTs are dead in 2023. They also tried to analyze the future of non-fungible tokens. Let’s find it out with a profound study on the ongoing NFT market.
A Little Background of NFTs
So to begin with, NFTs, like the rest of the cryptos, are volatile. It is evolving while bringing new features and more scarcity. In the last few years, a large number of artists, influencers, and collectors joined the NFT space. And their popularity continued to grow even where their markets were bumpy.
They provided greater control over the assets and enabled artists to make more profits. It eliminates the middlemen and lets buyers meet artists directly. And its results were visible when the onslaught of tokens overwhelmed the whole crypto market.
Even some time back, NFTs showed promising figures. For example, Statista Market Insights forecast an annual growth rate of 18.48% from 2023 to 2027. It also projected the NFT revenues to reach US$781.0 million in 2023 in the US. However, some red flags started to show up in the initial months of 2023.
The cumulative sales for the first three months of 2023 were significantly lower than those of 2022. While it may not sound too alarming, experts tried to figure reasons behind it anyway. It’s important to look at the NFT markets with a deep understanding of art trends, projects, and overall dynamics.
It even gained the attention of the gaming industry, real estate, and other domains. Moreover, it inspired many other artists to join the crypto movement. All those people are very hopeful about its future. Crypto enthusiasts know that Bitcoin has gone through a downtrend a couple of times. Thus, it may be over, but it still needs to be discussed among NFT fans.
What’s Making Them Say “NFTs Are Dead”?
Non-fungible tokens or NFTs caught global attention when they were introduced the enthusiasm was so zealous that everyone wanted to join the bandwagon. From artists to corporate, everyone wanted a piece of the NFT movement. However, as time passed, the zeal slowly began to fade and the market started becoming stale.
As the excitement died, speculations of NFTs being a fad or bubble emerged. Now, before reaching a verdict, the crypto users must understand the market dynamics too. They need to understand how the market of NFTs is different from that of other arts. Also, how they connect and impact each other.
Markets, Technologies & Their Role In NFTs
No one would be off the mark if they said that the crypto market and the art market affect NFTs. Although the art market usually deals with physical artwork and marketplaces, the digital space isn’t out of its ambit. Also, the stock market can have an impact on the NFTs.
That’s because they could be associated with companies or artists dealing with these art tokens. So, evaluating all these markets helps understand the current state of NFTs. There has not been any particular incident in any of these markets that could make NFTs dead.
Then what has changed and what is making people say that? Perhaps, the growing dominance of AI has led them to say that. Because notably, AI has eased the creation of digital art. To the point that it is risking the uniqueness of artwork.
Solana has emerged as the go-to blockchain network for NFTs. It offers low-cost and fast transactions that facilitate the process of art integration too. It is not impacting the NFT markets negatively at all. So, what’s the source of all this bad news?
Well, the NFT market is not seeing a good time right now. It is now showing positive trends but that doesn’t mean the future is bleak. Remember, Bitcoin also went through downtrends, and people said the same things about it too, but the crypto asset emerged even stronger after every descent.
Final Thoughts
There’s no strong evidence to corroborate “NFTs are Dead”. Thus it would be too early to say this form of crypto art is dead. On the contrary, it may emerge being more prevalent than ever. However, even predicting that would be a little premature. Hence, it’s best to observe the markets and see how things are shaping up.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
