- NFTs can be considered as the cousin sisters of cryptocurrency, but with a little twist, as they cannot be exchanged with each other.
- An NFT can be a virtual piece of image, audio file, video, gif, etc., which can be minted and through the NFT marketplace.
- The NFT sector has lured a plethora of attention from folks and celebs, with many prominent names all over the globe having acquired NFTs such as BAYC, cryptopunks and more.
Is This A Death Spiral?
The concept of NFTs was initiated back in 2021, when it was presented in the form of colored coins to be issued on the Bitcoin, as Ethereum blockchain did not exist at that time.
But it rose to its prominence back in 2021, when the NFT sector witnessed a leviathan surge in its trading volume. The sector witnessed sales of $17.6 Billion worth of NFTs in contrast to $82 Million during 2020, indicating a massive 21000% increase.
But as we are witnessing the crypto bloodbath, the NFT sector is experiencing its effects too. OpenSea, the greatest NFT marketplace saw a downslide in trading volume toi $700 Million previous month from $5 Billion during the beginning of the month.
As per an NFT data aggregator, average NFT sales plunged from $1,754 to $412 by April end.
Does NFT Sphere Still Has Some Game Left In It?
Surely, this appears like the NFT sphere is going down the dark hole, and who knows what will happen.
But there are some points that we must not forget, one is that it has attracted the big names like Eminem, Snoop Dogg, Mark Cuban to name a few.
People think that owning a piece of NFT is worthless,but we should not forget that NFT collections like BAYC allow the holders to earn ApeCoin, and will be utilized in their Otherside metaverse, where they have a chance to earn more APE. Useless? I don’t think so.
Finally, we should not forget the fact that Metaverse is still in its infancy, and many believe it to become several Trillion dollar market in future, and NFTs will be among the most vital elements in the digital realm. I guess this fact indicates and speaks more than what we are thinking of the NFT sphere today.
In my opinion, metaverse will play a crucial role in the rise of NFTs.
Source: https://www.thecoinrepublic.com/2022/07/05/is-this-the-end-of-the-nft-sector-or-is-it-preparing-for-a-comeback/