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Are NFTs Still Relevant in 2022?

NFTs have seen a surge in the internet and blockchain platforms in the last few years. In fact, 2021 had seen the biggest jump for NFTs as they reached the zenith. And that has brought several important questions in front of us, “Did NFT reach its peak in 2021? Are NFTs dead after a massive boom in the last two years? Or, is NFT the future of the internet and world economy?”

Among all these questions, the death of NFT is a buzzing one since the last two months have seen a price drop in a few NFT markets. Naturally, people are worried about the future of NFTs. Also, many NFT artists are concerned about investing in NFTs.

Thankfully, NFT isn’t dead. In fact, NFT has a brighter future indicated by the statistics shown in Non-Fungible.com. The website shows that NFTs have seen unthinkable sales in August 2021 worth $1.5 billion. Now that’s a huge amount in any terms. Also, the current trend shows that NFT sales haven’t slowed down at all.

Thus, there’s little chance of NFT dying in the next couple of years. However, it is still important for you to know the details of NFT and its marketplace if you want to invest in it. For instance, NFT is being criticized due to its energy consumption. Also, an only online storage facility is another concerning issue.

Thus, we will look at the history, benefits, and criticism of NFTs to find whether or not NFT is dead.

So, stick with us if you wish to invest in NFT and make a fortune from it.

History of NFTs

NFT is a pretty new phenomenon in the internet and blockchain platform. In fact, it hasn’t passed even ten years of its emergence. Kevin McCoy and Anil Dash created the 1st NFT only in 2014. It was named “Quantum.”

The NFT was a video clip. At that point, none could understand what revolution NFT would bring within the next few years. Also, you will be surprised to know the sales price of the world’s 1st NFT. It was sold a $4 in Namecoin, a blockchain platform.

In 2015, NFT saw a great leap in its history, as DEVCON 1 stated they were working on Etheria. It was the 1st large-scale NFT project. In 2016, they launched Ethereum, and it soon became the most sought-after NFT marketplace for creators, builders, and miners.

Next, in 2017, CryptoKitties, an online game, was monetized on NFT platforms. It allowed the online game players to trade the cats with NFTs within the gaming platform. After that, NFT hit $250 million market worth in 2020. Finally, in early 2021, NFT saw a great leap as more than $200 million were invested in NFTs.

But, it was until March 2021 that NFT saw a massive boom. On March 13, 2021, Ethereum had sole its ETH coins worth a total of $1.4 million within just 24 hours.

So, it is hardly one year since NFT has seen a buying madness. It shows that NFT is pretty in its early days. It is, therefore, going through ups and downs, as most platforms see in their early hours. It is natural.

But, the ups and downs in the NFT sales and pricing have created doubts in people’s minds. They think that NFTs are dead. But what’s the reality?

Let’s see it in the following section.

Are NFTs Dead?

Although NFT is yet to see a 1-year boom, many people already say that it is a falling market. Some even go one step ahead to predict that NFT has come to a standstill and is dead. But what’s the reality of NFTs?

Although there’s no concrete answer to these questions, looking at a few variables will help you in this purpose.

Firstly, only in August 2021, we see a trade of $1.5 billion in the NFT world. During that time, there were around 500000 sales. Also, almost 100000 wallets were created newly. Thus, on average, a single NFT was sold at $3500.

Also, the latest data shows that the sales of NFT are increasing. However, people still think that NFT has a bleak future. But why do people think so?

The answer lies in its massive and sudden boom. In March 2021, Beeple (the premier NFT artist) had sold his work at a staggering $69 million. After that, there were a few records in the NFT marketplace as many arts, and digital works were sold well over $10 million.

Nonetheless, after that, NFT has seen a slight downwards trend in the next few months. That’s why many people were forced to think that the time of NFT has come to an end.

But, as recent trends show, NFT has again picked up its sales.

For instance, Pak, an anonymous digital artist, sold his artwork, “The Merge,” at $91.8 million on December 6, 2021. So, it was not even more than three months ago when NFT saw a new record in its sales.

Even the last 7-days data on Non Fungible website shows that Bored Ape Yacht Club has sold 643 NFTs worth $58668457. Now, this number truly shows that even in February 2022, NFT is going through perfectly. So, there’s no question about NFT dying soon.

Recent Entries in the NFT World 

One way of looking at NFT’s future is to see who invests in NFTs among the business giants worldwide. It will give a clear idea about the NFT future as no business magnet and multinational company, in his sanity, will invest in the dying NFT.

So, what did we find? The latest entries in the NFT world are truly overwhelming and amazing. Let’s check a few of them.

First off, Lamborghini has announced to enter the NFT market pretty soon. In fact, Lamborghini’s authority has already tied up with Elysium Bridge to represent themselves in the NFT world; what’s more, Matteo Mauro, Giovanni Motta, and Emanuele Dascanio, three famous artists, have collaborated to create digital arts for the company. These NFTs will be auctioned.

The next name will be a big surprise for many people.

Yes, Lionel Messi, the 7-time Ballon d’Or winner, has also entered the NFT marketplace. In fact, he has gone one step ahead as he has already placed a few of his NFT arts for sale on the Ethereum platform. Recent data shows that LM10’s NFT arts have reached an unthinkable 6-zero figure. Isn’t it amazing?

So, now ask yourself. If NFTs were dead, would Lamborghini and Lionel Messi invest in the platform? The answer is no. Thus, it is safe to say that NFT isn’t dead. In fact, it is, perhaps, safe to say that NFT has a brighter future than we anticipate or may even imagine.

NFT and Cryptocurrency: The Stable Relationship

We all know that NFT is linked with blockchain and cryptocurrencies. Thus, it is essential to figure out the future of blockchain and cryptocurrency such as Ethereum to know where NFT arts will head shortly.

The good news is, according to our research, NFT will see stable growth in the coming days a more stable cryptocurrency will emerge. So, let’s look at a few points to determine the progress or regress of NFT arts.

Stable Cryptocurrency

NFT and its growth is linked directly with blockchain and cryptocurrencies. Thus, it is a good way to look at cryptocurrencies to find whether or not NFT will progress further. The rule of thumb is that people will invest more in NFT arts as more cryptocurrencies hit the market.

Also, present-day cryptocurrency such as Bitcoin or Ethereum is going through a massive transition period. Thus, most of the cryptocurrencies are volatile now. It means their pricing is going up one day, and the other day it’s in the fall. This volatility is affecting the NFT marketplace as well.

But, the good thing is experts say that the cryptocurrency world will see more stability in the next few years. It will also stabilize the NFT marketplace. As CNET reports, “stablecoin” will emerge as a stronger subcategory of cryptocurrencies. It is linked with the underlying offline assets.

As the report suggests, the emergence of stablecoin will eliminate the present volatility of the cryptocurrency marketplace. Also, it will usher newer horizons for the NFT platform, and NFT arts as people can trade more conveniently through multiple cryptocurrencies.

Rachel Mayer is working as a vice-president at Fine Tech Firm Circle. He says, “We already see payment settlement and cross-border payments through stablecoin. It found its strong foot holes in 2021, and in 2022 it will flourish faster and better.”

Thus, with more stable digital coins, there’s no reason people won’t invest in non-fungible tokens. 

Newer Market

2021 has seen a massive boom in NFT sales. The craziness for NFT collectibles and arts has seen incredible progress. Also, it is predicted that NFT will see newer markets in the coming days. At present, NFT is centered more towards digital arts or paintings mainly. But, this trend is going to change pretty soon.

Nowadays, NFT has started trade in virtual land and maps purchases. Also, many people predict that it will be the music ownership in the next generation for the royalty and profits of music artists. Moreover, we have already seen that several artists are publishing and licensing the ownership of their music in NFTs for digital uses. A few years ago, it was thought impossible. But the NFT madness has made it into being now.

Moreover, experts say that soon, NFT will see bigger markets for limited-time edition arts and products. You might expect to see concert tickets on NFT or the use of NFT in online video game purchases soon in 2022. In fact, many video game developers are working relentlessly to integrate NFT payment for their games. Thus, you could buy your weapons or maps to progress in the games through NFT. You might even sell your gaming highlights through NFT. Isn’t it amazing?

The co-founder of OpenSea, Alex Atallah, says that the opportunities of NFT and NFT collectibles are limitless. In fact, we have already seen different uses of NFTs that we couldn’t think of even a few months ago. Some unique uses of NFT can be seen in the following sectors:

· Event tickets

· software licenses

· Fan club memberships

Also, many giant companies are expanding their NFT platform. For instance, Pizza Hut has already launched its 1st virtual outlet to deliver pizzas. It works much like NFT arts through the digital payment system. Next up, Nike, the giant shoemaker, is also considering expanding their NFT possibilities for consumers.

Thus, it is clear that more companies will offer NFT exchange and trade for their user-end consumers, which should boost the NFT platform superbly. What’s more, although it can be scary and worrisome, we might see the use of NFT as the digital proof of our identity in the future. Yes, many experts say that in the coming days, NFTs will work as an identification module for people’s online and offline presence.

Recently, NFT purchased tickets as the identification and entry requirement for people in a New York party. It is on the rise too.

Thus, it indicates that NFT isn’t dying. On the contrary, the NFT marketplace is seeing leaps and bounds expansion in every sector of our life. Thus, it’s high time you should invest in NFT arts and collectibles. We will discuss the possibilities of investing in NFTs and their problems in the following parts.

The Future of NFT

We think we have already discussed the future of NFTs in the previous parts. Yet, it’s always good to put a few more insights on the topic to open up your eyes. Firstly, the NFT marketplace has progressed steadily in the past few months.

Yes, the NFT marketplace has indeed seen a few hiccups in the recent past. Yet, it has seen steady growth for most parts of 2021. Even in early 2022, the NFT marketplace is progressing, although it has slowed down quite a bit. But that’s understandable since it’s a growing market, and it’s bound to slow down at some point. So, what’s the future of NFT?

At present, it seems brighter than ever. For instance, many giant marketers see the NFT platform as a potential area for advertising for their products. More and more people are joining the NFT platform these days. Marketers are thinking about gifts and incentives for the NFT users to draw their attention to their specific products. It will be a fully automated system and will need less physical labor to help the advertising agencies work effortlessly.

In this regard, Enjin can be a great example. It is one of the leading and fastest-growing NFT ecosystems out there. It has recently launched its 1st NFT market campaign, “My First NFT.” The campaign has allowed the companies to interact with their potential customers and user-end consumers without any advertising agencies in the middle. Thus, it has worked as a cost-cutting and fast medium of online marketing, which is great news for NFTs. The campaign could drop 500000 NFT arts and collectibles to social media and online users who took part in the campaign.

So, more companies will consider the NFT platform as their direct advertising and marketing medium in the near future. It will surely benefit the NFT marketplace and the NFT creators.

Next, the growth of online video gaming will surely boost the NFT marketplace. According to Statista, in 2020, the video game market was worth $125 billion. The smartphone gaming market contributed around $77 billion, and PC gaming contributed $38 billion in sales during that period. Moreover, the video gaming market is expected to grow at knots in the next few years.

And that’s where the future of NFT comes. We all know that for online video gamers, it is crucial to collect different in-game weapons, maps, lands, and digital assets. Experts estimate that NFT will work as the premier currency or asset to trade those in-game purchases of different objects within the next few years. Many online multiplayer games will include NFT arts as the password and keys to access the platforms. Thus, soon NFT will be liked with the fastest-growing marketplace. 

Controversies Regarding NFT

Although NFT has seen great progress in the past few years, it wasn’t a smooth journey. It has picked up a few controversies and criticisms. You need to look at them and be aware of them before investing in NFT arts. Understanding the controversies will help you make a better decision for NFT investment.

Decentralized Storage

The decentralization of the NFT marketplace has helped it grow faster. However, this decentralization in storage has also greatly criticized NFTs, particularly its artworks and collectibles that you will trade.

Due to the massive volume of digital arts, lands, videos, and virtual products, there’s no blockchain storage for the NFT items. 

In fact, NFT trade will offer digital ownership of your purchased arts and products. Thus, anyone can actually download the NFT photos, images, videos, or sounds from their smartphone or PCs. So, there’s no authenticity, unlike the in-body purchases in the physical world. This is a big setback for NFTs.

Environmental Problems

The environmental issue is perhaps the most concerning and challenging problem that NFT has faced. We all know that miners and creators need gas to mine their NFTs, which consumes energy and electricity.

Many people say that the high-energy consumption for mining, creating, and trading NFT could boost the greenhouse effect and hurt the earth badly. For instance, Ethereum has established “Proof of Work” to regulate its NFT and blockchain transactions. The sad part is it is highly energy-consuming. So, it needs massive amounts of electricity. Thus, it impacts the carbon footprint.

Henceforth, the current underlying networks for blockchain and NFTs are criticized for hurting the environment. Also, many 3rd world countries may see an increase in the demand for electricity due to NFT mining that they can’t cope with properly. So, it will hurt their economy too.

The good news is many NFT marketplaces and blockchain platforms are validating alternative ways for NFT transactions. It will lower the electricity consumption greatly. Also, an offline storage system needs less energy, which favors NFTs.

Problems Related to NFTs

The basic problem with NFT is its vulnerability to hacking and thefts. NFT arts only provide you with the digital ownership of the artwork or virtual land your purchase using Ethereum or other cryptocurrencies. But, it doesn’t give you any physical assets.

The problem arises as anyone can copy and save your artworks in their storage. In an article in the Insider, written by Natasha Dailey, we saw that Geoffrey Huntley had downloaded all NFTs with 20-terabyte indexes. Thus, the article estimated that most, if not all, NFT arts are simply website directories to download images.

However, this is still a confusing issue as NFT isn’t only about images and digital arts. It has virtual lands, maps, NBA and sports collectibles, etc. But, as it stands now, this easy downloading process of NFT arts is surely a threat to its future.  

Should You Invest in NFT At Present?

Now that’s a big question, especially if you are new to the blockchain and NFT platform. But we will aid you with the cause.

As our research shows, it is safe for you to invest in NFT arts. It’s not going to die in the next few years, at least. However, it is suggested that you thoroughly understand how NFT works and its possible loopholes before investing big in it.

Thankfully, there’re many affordable NFT marketplaces to buy or sell NFTs without investing big in it, for starters. So, you can try out these platforms to invest a few hundred dollars to see how it goes. In this regard, Rarible, OpenSea, or Foundation marketplaces can be a great help for you.

Conclusion

So, are NFTs dead?

Long story short, NFT isn’t dead at all. In fact, it is reaching its peak as more people are showing interest in selling their arts, digital products, and content on the NFT platform. Also, giant companies and conglomerates are stepping into the NFT platforms to take advantage of this unique marketplace. Also, NFT is solving its problems pretty faster for a secure and profitable business model. Thus, it is a lucrative sector to invest in for you.

But, remember one thing; not everyone will be Beeple and selling their arts for million on the platform. So, you should be selective and patient as you work with NFTs. When you know its loopholes, it will surely help you get good fortune.

Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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