NFTs have suffered everything from mockery and scams to a wide drop in demand due to crypto winter. Sometimes it almost seems like some of the projects in space continue simply because of hopes and dreams. Still, the sector has persisted through the recession, and the recent momentum in cryptocurrencies has brought investors, community members, and viewers back to interest in NFTs.
Sure, NFTs get a lot of attention for all the silly apes, rocks, and JPEGs people spend millions on, but there's a widespread belief in the industry that there's great value behind the concept and the various use cases it brings. .
“I think NFTs are just cultural artifacts of cryptocurrencies at this point. When people have fun, it's easier with a JPEG than just a token,” she told TechCrunch + Ilja Moisejevs, co-founder and CEO of nft marketplace Tensor.
Most people hold onto their NFTs regardless of their monetary value, according to Yat Siu, co-founder and CEO of Animoca Brands. Making money from NFTs validates the conviction of their holders, but Siu believes there are larger factors driving persistent ownership.
Similar to the reason people buy diamonds, investing in NFTs has a sense of value because it makes users look good or improves their social standing, Siu said.
“Some are basically frat clubs; just people having fun with similar interests,” Moisejevs said. “It's not a crazy idea, but NFTs make (the experience) more powerful by putting them together. “Either they lose money together or they make money together.”
And it seems more people are joining the “make money together” crowd: in the last 30 days, there have been around 120,000 more nft buyers than sellers, and sales volumes have increased by 72.7% to around 1.66 billion dollars. according to the nft aggregator CryptoSlam.
