The non-fungible token (nft) market has seen a remarkable rise in recent years. In 2021, the total value of traded nfts reached a significant milestone of $17.6 million, and then increased to $24.7 billion in 2022. This rapid growth has captured the attention of investors and has become their favorite top-tier investment portfolio. In 2023, the total value of the nft market plummeted to $11.8 billion. Will nfts become worthless in 2024 and beyond? As we delve deeper into the past two years, let’s explore the key factors that have contributed to these exciting events.
nft market collapse in recent years
Outranked by ai-related searches
After artificial intelligence (ai) became a trending topic, searches skyrocketed and surpassed all other topics. ai-related search volume reached a record 13,210% in 2023.
Meanwhile, by early 2024, search volume for nft-related keywords had fallen by 82%. The value of nft collectibles is down 90% from the 2021 peak.
According to the assessment of speculators, the nft market collapsed, becoming a fad after a series of scandals in the crypto market in 2022. However, the future of nft in 2024 shows that the correlation between these two markets is not so narrow as it seems. From an investor perspective, you are still deeply involved in this market. It is evolving and generating great impacts throughout the market. nft investors still have nfts firmly in their hands, preparing for a stronger inhale. So, do nfts still exist?
Mature market signals.
nfts were once the desire of many global brands. Top-tier companies like Coca-Cola, Nike, Gucci, etc. have successfully adopted nfts as a strategy. They have used nfts to seamlessly blend various customer experiences from Web2 to Web3. Leveraging innovative technologies like nfts in a brand’s communication strategy can enhance customer engagement and foster long-term brand loyalty. nfts have become an indispensable tool for the digital economy, especially in the blockchain era.
Major companies have successfully adopted nft as a strategy. Source: Coca-Cola
The market report in the 2023-2024 stage shows that nfts are still a reality, and that they are on the way to being associated with more sustainable economic and social values, emphasizing ownership and physical verification rather than shocks due to the psychology of the market. The nft market is capable of maturing in the recession phase, quietly but strongly. After the SEC investigation surrounding ethereum 2.0, doubts about the instability of nfts have been removed. The nft market again saw strong growth soon after, with an 18% increase in total revenue in 24 hours.
How does the nft market fall and rise in 2024?
The future of nfts: describing the transformation
Reports from major nft market tracking platforms such as CryptoSlam, non-fungibleand DappRadar show that 2024 will see significant moderations in this sector. These include the robust emergence of more creators, artists, and derivative products. In the current landscape, the nft market is quite thriving and robust, with platforms focused on sustainable value and real profits.
The nft market is abundant and fertile. Source: Coinmarketcap
The comment that the nft market is dead this year is said to be quite hasty and exaggerated. While obituaries call nfts alternatively, experts and marketers still believe in the long-term economic value and future of nfts. nfts are dead, but only part of the fomo mentality and exaggerated values. Now, they are maturing inside with a strong core where they have more value, versatility and sustainability than in the previous phase.
Anoir Houmou, founder and CEO of SUI-backed platform RECRD, acknowledged as much, explaining that calling nfts dead is an “oversimplification” when evaluating this market. The psychology of investors is more mature and has a safe, deep and economic vision when investing. “We are focusing on a phase of sustainability, real-world utility, and integration into the broader technology ecosystem,” he shared.
Market cap and volume over the past 12 months. Source: NFTGo
Although the total capitalization and trading volume suffered a large drop in 2023, some good signs have appeared since 2024. The data shows that since the beginning of 2024, the market capitalization and trading volume tend to increase and then gradually decline in the second quarter with mitigation. This shows that a mature market is emerging. The investment demand is condensed, and top-tier nfts continue to dominate.
The nft market adapts to be different
The nft market in 2024 has positioned itself as a long-term investment market with highly independent valuations after a difficult progress. Holders are rising, while the number of traders is plummeting. The market was volatile, but it has become calmer and less noisy than before. The numbers of sellers and buyers are always balanced, which shows the potential of the market and the hope of thriving. There will be no major difference in price as long as the balance between buyers and sellers continues. We can fully believe in the market adjustment. It is ready to become strong enough to embrace the digital economy.
The numbers of sellers and buyers tend to balance out. Source: NFTGo
A hopeful future for the nft market in 2024 and beyond
nft market gains popularity
So far, nft sectors have clearly differentiated themselves to attract customers. Each nft sector has its own values and characteristics that are valuable in the broader ecosystem. The creators are entering an economical market with their meticulous strategy. Fierce competition requires them to have exclusive business and customer development strategies, as well as deep research, strong influence and reliable public services. The business models of nft projects aim to provide a seamless experience not only on Web3 platforms but also by connecting and serving them in other aspects of customers' lives. Web3 is constantly on the path of supporting and creating real value like Web2, which will help nfts proclaim their value and never die.
Creators have their own strategies in the nft market
Pudgy Penguins is a name known for its successful customer service strategy.
Take Pudgy Penguins for example, which is not only a top-notch collection but also famous for its wide coverage in the retail market. Pudgy Penguins has cooperated with Walmart to sell physical products related to their nft collection. Recently, they announced their presence in Target with Penguin toys and collectibles. Pudgy Penguins is a well-known name for its successful customer outreach strategy, not only in the nft market but also in other traditional markets.
Another example is crypto Punk, the first major nft collection in the nft market, which is still growing powerfully and leading market reports. Thanks to its historical and pioneering elements, the value of crypto Punk has always been maintained over time due to its rarity and sense of traditional art.
crypto Punk is the historical collection
nfts occupy an independent development space
Despite the strong relevance between nfts and eth, the nft market has maintained its value despite fluctuations in eth prices. The capitalization rates of nfts and eth are very different, with eth reaching all-time lows. This shows that the nft market has developed independently. Through their participation, investors fostered a stable and secure market environment, demonstrating resilience against external influences.
How do we prepare for the future of the nft market?
Learn from the nft market of the past and prepare for the future
It's hard to ignore the fluctuations in the nft market over the past two years. nfts have clearly demonstrated their usefulness and value in this context of chaos. The nft market has evolved from a focus on speculative elements to one that emphasizes practical applications and demonstrable value. This also helps investors have a more realistic, objective and in-depth view when choosing portfolios.
Learn from the nft market of the past and prepare for the future
From the perspective of the investment community, nfts are no longer a worthless collection or a passing fad. With clear visions, nft will soon become a bridge between the physical world and the digital world, paving the way for a multi-dimensional experience space and an endless stream of customer engagement.
Take advantage of trends to quickly enter the nft market
The evidence and signs above show that nfts are not dead. With the development of artificial intelligence and dense media sharing platforms, nfts have pushed the boundaries of creative art and collection. Intrinsic value is neither market support nor speculation. By complementing and symbiosing with each other in real economic and investment markets, nfts are anchoring themselves on a solid foundation.
Capture trends to quickly jump into the nft market
During bitcoin's up-and-down period in early 2024, the nft market has hopes of making a comeback due to its relevance to the blockchain. The nft market started with fever, but has now stabilized and successfully “immunized” itself. Project creators and owners are doing a great job of generating real-world value for nfts by expanding their visibility, tangibility, and trust.
Conclusion
nft is not yet in the FOMO stage for unknown reasons. The market itself has stood on its own and has matured steadily; it is not dead. As the vast and varied space for ai and Blockchain technology continues to develop, nfts have become a powerful tool for data authenticity and ownership identification. There is great potential to apply nfts in the fields of education, healthcare, life, medicine, and law. That is the main factor that allows the nft market to expand and be alive in the future.
