Disclosure: The views and opinions expressed herein are solely those of the author and do not represent the views and opinions of the crypto.news editorial.
The non-fungible token (nft) bubble burst long ago, but these versatile digital assets are proving harder to eradicate than many think. We may be in the grip of another severe recession, with trading at an all-time low for even top-line nft projects compared to last year. Still, one thing is certain: despite the rise and fall and many detractors, the broader utility of NFTs as an innovative business tool will become and remain a permanent fixture in society.
That's why legacy brands like Nike and Tiffany & Co. integrate NFTs into their business plans. Ultimately, collaborations with brands, creators and large companies will improve market sentiment. In other words, widespread adoption will occur as more leading global brands bite the bullet first and simplify it for the rest of the web3 and non-crypto world.
Gary Vee had something on his mind when saying The inflated market and people trying to make a quick buck are the main reasons behind the slowdown of nft spaces. However, despite the sharp decline and the current macroeconomic climate, good projects like crypto Punks and Ether continue to have high demand and strong community engagement. This is due to its fundamentals, its strong project history, and its ability to meet a specific need, which is true whether we are talking about a simple collectible or an nft that has utility.
It's not that the industry has run out of good use cases for NFTs, but rather that the web3 projects leading them are ironing out their roadmap kinks and still achieving overall project growth. While others are bowing to competitive pressure, as evidenced by the recent royalty cut by OpenSea. NFTs will find their niche and introduce new dynamics to the financial market as tokenization expands and provides more utility to luxury brands and the gaming, entertainment, music and property industries. These could include film and media rights, full and fractional ownership, which will make investments more inclusive, time-sharing, ticket sales, memberships, ownership transfers and more.
The art market may have been the coming-out party for NFTs, and the digital art renaissance could still bring significant changes to the creative sphere; However, there needs to be more than just nft drops and creator fees – support is needed. For starters, web3 projects should find new ways to improve access for global audiences and support for artists and creators, and usher in an era of fairer compensation for creators and intellectual property owners. However, in the film industry, for example, this will only be possible once the sector guarantees sufficient protection around intellectual property.
Funders, stakeholders and venture capitalists want to see more than a solid roadmap; They want expert operators with a strong track record of commitment to the specific project and who understand the push and pull factors of customer behavior change. Beyond this, the ears of crypto and non-crypto natives will perk up as engagement between industries and on- and off-chain initiatives becomes more prevalent, something that was lost and suppressed as sectors and the experience left them isolated.
As for creators, we've been talking about web3 creating new jobs and supporting new ways of working, but independent creators have yet to absorb the fruits of their labor. If you think about the music industry, for example, for NFTs to help emerging artists, we need more well-known and experienced artists to bring their creative style and expertise. Additionally, as more companies emerge that focus on protecting and supporting creators on this journey and greater regulatory clarity is implemented and standardized, industries will become more open to NFTs and the risks involved. It is a challenge for people to participate in spaces where they can do something one day but maybe not the next, which is where government support would prove invaluable.
As mentioned, another industry that would benefit from the application of NFTs, if done by the right visionaries with a clear purpose, is the real estate sector. These projects can only be led by someone who has an idea of how to create, with knowledge of how to run a business or foster lasting demand. This industry is plagued by a complicated process that has not yet reached the 21st century, which is where NFTs come into play as a counterfeit-proof mechanism. Ultimately, it is about eradicating centuries-old practices of administrative processes and uniting the physical and digital worlds through digital twins. For example, people who have never been able to own a home before can now attest to fractional NFTs and land trading NFTs.
The unproven financial viability of the nft market is still in doubt, but forecasts predict a compound annual growth rate of 34.2% between now and 2030. So while nft pessimism may be at an all-time high, we live in a digital society where we cannot ignore the benefits of this technology due to its phase immature Creating continuous advertising and adapting to modern trends will account for part of the industry's accelerated growth, but projects will need to strike that precise balance between much-needed innovation and accountability.
