Is NFT Boom Over? Exploring the True Potential of NFTs

Jay Crypto

Blogger

Following the widespread use of NFTs, numerous cutting-edge NFT solutions have evolved. NFTs were implemented in a variety of sectors in 2021, including decentralized finance, digital artwork, video games, smart contracts, and crowdfunding. The latest developments in NFT include a wide range of art, sizable collections, and the involvement of big businesses in well-established networks. 

NFT Trading volume has tanked

2022 might be characterized as the year of NFTs because the trading volume of many NFT trading platforms like Opensea and several others has tanked.  Some people are claiming that the NFT industry is dead. So the question arises, is the NFT boom over? 

We will discuss the answer to the question ”Is NFT Boom Over?” We will also explore the true potential of NFTs along with the future trends in the sector. Let’s jump right into this discussion. 

A little Bit of Background…Rise of the NFT Market in 2021

The rise of non-fungible tokens (NFTs) in 2021 has been significant. NFTs, which are unique, indivisible digital assets built on blockchain technology, have gained a lot of attention in recent years, as more and more users have become aware of their potential to enable true digital ownership and open up new markets and business models.

The popularity of NFTs grew with huge demand and the global NFT market cap reached $23 billion in 2021. Although the overall NFT market cap has increased in 2022, the hype is fading away.

One of the key drivers of the rise of NFTs in 2021 has been the growing popularity of decentralized finance (DeFi) and blockchain-based gaming. Both of these fields have embraced NFTs as a way to create unique, tradable assets that can be utilized in novel and innovative ways. For example, NFTs have been used to create a virtual property that can be bought and sold like physical property, and to create digital collectibles and gaming items that can be traded and used within online games.

In addition to their use in DeFi and gaming, NFTs have also been embraced by the art world, with many artists and galleries now creating and selling NFT-based artwork. This has led to some high-profile sales and auctions of NFT art, further increasing the visibility and popularity of NFTs.

Overall, the rise of NFTs in 2021 has been significant, and the technology is likely to continue to gain in popularity and importance in the coming years. Let’s explore the answer to the question” is the NFT boom over?”

Is NFT Boom Over?

NFT market trading statistics indicate that NFTs were not spared the crypto market correction. The non-fungible token market is finding it difficult to sustain the massive increase it saw during the 2021 bullish market. Trading volumes have dropped precipitously recently and are already at historic lows since July 2021, according to figures from prominent NFT trading sites like OpenSea.

Declining NFT market trading volume

According to recent data, NFT trading volume has decreased by 97% from its high in January, from nearly $17 billion in January to $460 million in September. Many of the initiatives that were launched to ride the trading wave have disappeared.  

It's okay to say the boom in non-fungible tokens (NFTs) is over. The market for NFTs has certainly been declining in recent months, but still many people are excited about the potential of this technology to enable true digital ownership and open up new markets and business models. However, like any market, the NFT market is subject to fluctuations and changes, and it is possible that the current trend could subside at some point.

The hype around the NFT market is vanishing, and the market will survive the current downtrend. Real innovation will emerge from this bear market. Let's explore the real potential of NFTs, and what the future holds for the market.  

True Potential of NFTs

Non-fungible tokens (NFTs) have recently gained a lot of attention, with many people hailing them as a revolutionary technology that could fundamentally change the way that digital assets are created, owned, and traded. While the hype around NFTs is certainly significant, there is indeed potential for this technology.

One of the key potential benefits of NFTs is that they enable true digital ownership. Unlike traditional digital assets, which can be easily copied and shared, NFTs are unique and cannot be replicated or counterfeited. Creators thus have more control over their digital creations and can ensure that they are properly compensated for their work.

  NFT Potential in different Sectors

In addition to enabling digital ownership, NFTs also have the potential to open up new markets and business models. For example, NFTs could be used to tokenize virtual real estate, allowing people to own and trade virtual property as easily as they do physical property. They could also be used to create new forms of digital collectibles and gaming items, which could be traded and used in new, innovative ways.

Overall, while the hype around NFTs is certainly significant, the technology does have the potential to enable some truly groundbreaking and transformative use cases. Whether or not the NFT sector will realize this potential remains to be seen, but the potential is definitely there.

NFT trends that can Emerge in 2023

The NFT market is poised to reach the peak of technology innovation with its various applications in many sectors. Following are some of the NFT trends that can emerge in 2023:

NFT Loans

With this new crediting technique, owners can get funding for brand-new initiatives or other times when they need money by pledging their NFTs as security. This NFT trend will improve and spread across sectors where users will borrow against their digital assets. 

NFT Loans

This concept can be used on several platforms in the decentralized finance (DeFi) industry. NFTs may be used as surety on these venues before obtaining credits. One of the most used DeFi portals for NFT security interest credit facility is the arcade. Digital assets are deposited in an escrow that operates on a smart contract after an arrangement with all conditions has been reached. NFTs cannot be retrieved or frozen until the borrowing commitments are repaid in full or until a default occurs.

Metaverse Gaming 

As NFTs gained popularity, players discovered they can reap benefits from them. Many initiatives assist users in utilizing NFTs to open up new possibilities. Future metaverse games will need a lot of NFT tokens, and this industry is already well-known.

Metaverse Gaming NFTs in a Virtual Space

Utilizing assets, players can produce game material. A key component of metaverse gaming is NFTs. It will eventually become the industry norm in this field. Start employing this technology for game creation and pay close attention to it. In the metaverse gaming, everything will be available in the form of NFTs and this NFT trend will boom in 2023.

Digital NFT Tickets

The sale occurs instantly to the customers after establishing special digital NFT tickets on the blockchain. As a result, money can be kept in a virtual wallet and utilized on any computer or mobile device. The newest step in event development is the use of digital NFT tickets. To ascertain the value being tranferred, holders can either produce a sufficient number of NFTs, encrypt them, or hold an auction in which buyers can submit bids.

Digital NFT Tickets

Individuals will be able to carry their tickets with them in their wallets, just as in other places, and present them when they enter the venue. This NFT trend is expected to boom over the next few years, and ticketing is a new sector to take into account. Real-time tickets from numerous businesses have already been developed and released.

Digital Twins NFTs

Any item or service can be duplicated with the aid of digital twins NFTs utilizing simulation techniques and virtual reality. New tech facilitates the creation or digital duplication of genuine products and services.

The replica and the original physical thing exchange information. Monitors provide feeds and assist in keeping track of conditions. Numerous well-known international firms have begun to operate in the internet sphere using NFT lookalikes for everything. Consider Adidas and its connection to Karlie Kloss as an illustration. Customers can utilize the brand's digital sneakers on a blockchain thanks to such a combination. The trend of digital twin NFTs can grow in 2023. 

We have more

The potential NFT trends don’t end here. Following are some of the other sectors that will benefit from NFT applications. 

• NFTs in healthcare
• NFTs in Virtual/Physical Land
• NFTs in Social Networking platforms
• NFTs in Fundraising Platforms
• NFTs in Data Protection

These are some of the popular NFT applications that can see exceptional growth in the coming years. NFTs are already altering some of the above-mentioned sectors. In the coming years, growth will increase in such sectors. 

Final Thoughts

NFTs have quickly penetrated every industry, including the arts, gambling, and finance. The true capacity of non-fungible tokens has not yet been realized. Large sums of money have been invested in NFTs, and initiatives are being worked on by Meta, Twitter, and Reddit. Additionally, new NFT companies are being founded daily. NFTs are trusted by entrepreneurs, enthusiasts, and collectors. There will undoubtedly be more new NFT ventures.