According to Web3 executives, a sharp collapse in the price of non-fungible tokens (NFTs) should not be seen as a sign of distress, but rather a sign that the technology is maturing.
“I wouldn’t say the nft market has regressed,” Decentraland Foundation CEO Yemel Jardi told Cointelegraph. “Rather, he is maturing.”
Jardi’s comments come after a September report from dappGambl that analyzed more than 73,000 nft collections and concluded that up to 95% of the NFTs studied were worthless as prices, sales volume and transactions fell. During the past year.
Jardi highlighted that markets are cyclical and it is natural that there are periods of adjustment.
He attributed the drop in nft price floors in part to “speculative trading” and said the value of NFTs should instead be anchored to their utility.
“As people become more familiar with NFTs, their use cases and utilities, the market will stabilize and the focus will shift from speculative trading to genuine utility and innovation.”
Anjali Young, co-founder of tokenized community management platform Collab.Land, is also not surprised by the anti-nft sentiment.
“Any innovation, especially one that has financial impact, cultural value and status, will raise questions during its low moments,” he said.
Young believes many projects have stumbled since marketplaces like OpenSea removed mandatory royalties at the end of August.
Despite this, Young stated that NFTs are “here to stay” and he expects them to be used more frequently for loyalty programs, rewards, advertising and proofs of authenticity in the coming months.
They have left us all for dead, saying that 95% of NFTs are worthless.
But the truth is very, very different.
Look no further than automotive companies and their adoption of nft technology️
From collectibles to supply chains, perhaps no industry is more optimistic about Web3.
a short thread
– Rarity Sniper (@RaritySniperNFT) September 23, 2023
Tama Churchouse, COO at Cumberland Labs, recently opined that NFTs are not “dead,” arguing that recent developments in the space show there are still signs of life.
While the nft market has been primarily dominated by digital art, Jardi said non-fungible tokens remain an important tool for the broader digital landscape, as ownership of tangible assets can be indicated to users in ways novel.
Wow, someone just listed a $26.5 million building in one of the most prestigious areas of New York City as nft?src=hash&ref_src=twsrc%5Etfw”>#nft.
Managing property rights through NFTs is a very interesting use case to eliminate intermediaries. #real estate #nfts #NFTCommunity #nftcollector pic.twitter.com/PowOwwMZsb
– Chris Wieduwilt (@deloreanchris) June 6, 2022
Jardi believes that governments and institutions will leverage NFTs in the future for various use cases. On October 9, Chinese state newspaper China Daily announced plans to launch a platform for trading digital collectibles.
Related: Widespread nft Adoption Will Be Primarily Driven by Its Utility
The entertainment sector is another big market for the nft industry to capture, according to Scott Lawin, CEO of sports token platform Candy Digital.
Lawin told Cointelegraph that 24% of Major League Baseball fans who entered ballparks with mobile tickets in 2022 redeemed their complimentary commemorative digital ticket provided by Candy as a form of souvenir.
“Those are all real-time uses of NFTs,” Lawin added.
On the brand side, Adidas, Bud Light, Gucci, Prada and other companies diving into the nft space have seen a recent increase in the number of active users on their Discord channels, Young said.
nft market capitalization currently nft-prices/?sh=6a2b02466dfb” target=”_blank” rel=”noopener nofollow”>it’s found at $5 billion, according to data from Forbes Digital Assets. The CryptoPunks and Bored Ape Yacht Club collections, owned by Yuga Labs, are the two largest, with market capitalizations of $710 million and $400 million, respectively.
Magazine: nft Collector: William Mapan’s Distance Sells Out, nft Floats on Macy’s Parade, Nouns DAO Forks