The non-fungible tokens (NFTs) saw massive hype in 2020 and 2021. But in recent months, the bear market has caused a sharp loss of interest in the non-fungible token. Trading volume has fallen significantly. Are the NFTs already dead?
We want 3 reasons Mention why the NFTs will continue to be relevant for years to come and why the next hype is sure to come.
Why did the trend around NFTs fall in 2022?
The flattening of the trend around non-fungible tokens (NFTs) is mainly due to the bear market in cryptocurrencies. Bitcoin price has lost about 75% of its value in the last 12 months. Altcoins mostly saw even bigger losses. This has also caused the profit from trading tokens to decrease.
In a bear market, people interested in the short term will leave and move on. Only those people are left who are passionate about NFTs. This of course means that the trading volume on NFT exchanges like OpenSea and also the general interest in the non-fungible tokens decreases.
Why might NFTs remain relevant in the future?
Doubts now also arise as to whether NFTs really have a greater benefit to people, or whether it is just a short-term hype and an industry with numerous scams. However, we give 3 reasons why the NFTs will also be useful and successful in the long term.
1. NFTs ensure ownership
In recent years and decades, the subject of property and possessions has become increasingly controversial. First, fewer and fewer people can afford real-world property. On the other hand, the digital world brings with it greater challenges for the subject of real things.
Non-fungible tokens ensure ownership in the digital world, thus giving people the security of owning digital goods. The issue of digital ownership is universal and will only become more relevant in the coming years. NFTs offer an excellent solution.
2. You can ensure competence in the digital space
Not only digital goods can be assigned to a person through NFTs. For example. doctoral or master’s degrees may also be clearly attributed to the person who acquired them. This prevents title fraud, which has become easier in a digital world.
In general, NFTs can clearly demonstrate a specific competence or achievement of a person. This makes the digital world fairer and puts the values of performance and competence back in the foreground.
3. You have enormous marketing potential
The NFT technology was already used in great hype by companies such as Adidas, Nike or Gucci. You can be critical of these companies. Nevertheless, the NFT campaigns of these companies show that the potential for marketing with NFTs is huge.
In the future, more and more SMEs should use NFTs as a marketIng tool can implement. This may become more common as the technology becomes more widespread and also offer immense value to the masses.
Is it still worth investing in NFTs at the moment?
The hype surrounding NFTs has weakened considerably in recent months. This also means that less capital is circulating in the area and the potential return is reduced. However, this also leaves room for more sustainable projects that you can invest in in the future.
An investment in NFTs could therefore be particularly worthwhile even in these bearish times. Use this time to get more involved in NFT projects and see which projects can bring you sustainable added value!
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