Is the NFT market doomed to fail? That’s the question on the minds of many people as the hype around NFTs has died down and the market has hit a slump. Many artists are hesitant to launch their collections due to the ongoing Crypto winter. BAYC, once a staple of the NFT community, has split the masses, with some arguing they are a ‘cringe’ relic of the past. In fact, Web3 communities in Italy recently hosted an ‘NFT Funeral’. But before you sound the death knell, let’s look at the facts.
How NFTs are doing in the Market?
The practical use cases of the technology have only grown stronger. NFTs are being used in real-world applications, such as the sale of gaming assets, music royalties, and even real estate properties. The market has evolved, and NFTs are increasingly being seen as more than just a speculative investment.
The adoption of NFTs by institutions like Christie’s and Sotheby’s has brought legitimacy to the market, with high-profile auctions of digital art pieces fetching millions of dollars. In March 2021, a digital artwork by Beeple sold for a record-breaking $69 million at Christie’s, making it the third-highest sale price for a work by a living artist. This institutional adoption is a sign that NFTs are moving away from pure speculation and towards more of a defined practical use.
NFTs are also being integrated into other industries, such as sports and music. In sports, NFTs are being used to sell unique merchandise and authenticate memorabilia. In music, they are being used to sell concert tickets and authenticate music royalties. The integration of NFTs with these industries has created new practical use cases for the technology, making it more valuable than just a speculative art investment.
The future of NFTs may lie in the combination of online and offline value. NFT art, which was once a novelty in the bullish market times of 2020, has moved into the background. What might save NFTs is the growing interest in digital ownership and the ability to prove ownership of digital assets.
NFTs are no longer just ‘glorified jpegs’ but rather ‘bullet-proof verification pieces’ that can be used in real-world practical use cases. The demand for digital ownership verification is not limited to the art world but extends to other industries, such as real estate and personal identity. These use cases might be the saviour of NFTs.
The potential for broader use cases is leading to a shift from speculation to practical use. While the current slump in the NFT market might be perceived as a setback, it is the necessary catalyst to move the space forward. With art projects becoming a less lucrative investment, builders and investors are looking at new ways to leverage NFTs and create value in areas we did not previously imagine. The practical use cases we’re seeing signal that the market has significant potential to grow and evolve beyond just art and speculation. The future of NFTs lies in the intersection of online and offline value, where the technology can be used to verify ownership and facilitate transactions across various industries.
So, while the NFT market may have hit a slump, it’s not all doom and gloom. The practical use cases of NFTs have shown us that this technology is more than just a speculative investment, and it has the potential to revolutionise the way we think about ownership and transactions. As the technology continues to mature, we can expect to see more practical applications of NFTs beyond the art world. In this regard, NFTs are dead – long live NFTs.