The non-fungible token (NFT) market has experienced significant growth in recent years. Looking back at 2021, the total value of NFT transactions reached a major milestone of $17.6 million and soared to $24.7 billion in 2022. This rapid growth attracted investors’ attention and made it a favorite addition to their portfolios. In 2023, the total value of the NFT market plummeted to $11.8 billion. Will NFTs become worthless in 2024 and beyond? As we delve deeper into the past two years, let’s explore the key factors that contributed to these exciting events.
The NFT market has collapsed in recent years
Replaced by AI related searches
When artificial intelligence (AI) became a hot topic, searches surged, overwhelming all other topics. In 2023, artificial intelligence-related searches reached a record high of 13,210%.
Meanwhile, searches for NFT-related keywords dropped by 82% as of early 2024. The value of NFT collectibles is down 90% since its peak in 2021.
In the evaluation of speculators, after a series of scandals in the cryptocurrency market in 2022, the NFT market collapsed and became a fad. So tight. From an investor’s perspective, they remain deeply involved in this market. It is constantly evolving and having a huge impact on the entire market. NFT investors are still holding on to NFTs, bracing for stronger absorption. So, do NFTs still exist?
Signs of market maturity
NFTs were once aspirational for many global brands. Top companies such as Coca-Cola, Nike, and Gucci have successfully adopted NFTs as a strategy. They use NFT to seamlessly combine the different experiences of customers from Web2 to Web3. Leveraging innovative technologies such as NFTs in your brand communication strategy can increase customer engagement and foster long-term brand loyalty. NFT has become an indispensable tool for the digital economy, especially in the blockchain era.
Top companies have successfully adopted NFTs as their strategy. Source: Coca-Cola
The market report for the 2023-2024 period shows that NFT is still a thing and is moving towards being associated with more sustainable economic and social value, emphasizing ownership and physical verification rather than the impact of market psychology. The NFT market has the ability to mature quietly but strongly during downturns. Concerns about NFTs being extremely unstable have been dispelled following the SEC’s investigation into Etherium 2.0. Soon after, the NFT market experienced strong growth again, with total revenue growing by 18% within 24 hours.
How will the NFT market fall and rise in 2024?
The future of NFTs: describing the transformation
Reports from leading NFT market tracking platforms such as CryptoSlam, nonfungible and DappRadar indicate that 2024 will see a significant slowdown in the field. Prominent among them is the strong appearance of more creators, artists and spin-off products. Under the current situation, the NFT market is quite prosperous and stable, and the platform focuses on sustainable value and practical benefits.
The market for NFTs is rich and fertile. Source: Coinmarketcap
This year’s comments that the NFT market is dead are said to be quite hasty and exaggerated. Although obituaries alternately refer to NFTs, experts and marketers still believe in their long-term economic value and the future of NFTs. NFTs are dead, but that’s just part of the Fomo mentality, and their value has been exaggerated. Now, they are maturing on the inside, with a strong core and more value, versatility and sustainability than in the previous phase.
Anoir Houmou, founder and CEO of SUI-backed platform RECRD, recognizes this and explained that calling NFTs dead is an “oversimplification” when assessing this market. Investors are psychologically mature and have a confident, profound and economic vision when investing. “We are focused on the sustainability phase, real-world utility, and integration into the broader technology ecosystem,” he shared.
Market capitalization and trading volume over the past 12 months. Source: NFTGo
Although the total market capitalization and trading volume will decline sharply in 2023, there have been some good signals since 2024. This indicates that a mature market is emerging. Investment demand has condensed, and blue-chip NFTs still dominate.
NFT market adjustment is different
The NFT market in 2024 will, through a complex process, position itself as a long-term investment market with highly independent valuations. The number of holders is increasing, while the number of traders is plummeting. The market, while volatile, is calmer and less noisy than before. The number of sellers and buyers is always balanced, showing the potential of the market and the hope of flourishing. As long as buyers and sellers remain balanced, prices won’t differ much. We can fully believe in market adjustments. It is ready to become powerful enough and embrace the digital economy.
The number of sellers and buyers tends to be balanced. Source: NFTGo
A promising future for the NFT market in 2024 and beyond
NFT market gaining popularity
So far, the NFT industry has attracted customers through clear differentiation. Each NFT industry has its own values and characteristics that are valuable within the broader ecosystem. Creators are entering the economic market with careful strategies. Fierce competition requires them to have unique business and customer development strategies, as well as deep research, strong influence and trustworthy effectiveness. The business model of the NFT project aims to provide a seamless experience not only on the Web3 platform, but also by connecting and serving them in other aspects of customers’ lives. Web3 is steadily on the path to supporting and creating real value like Web2, which will help NFTs declare their value and never die.
Creators have their own strategies in the NFT market
Pudgy Penguins is known for its successful customer development strategy
Take the Chunky Penguin, for example, which is more than just a top collectible. It is known for its ubiquitous coverage in the retail market. Pudgy Penguins has partnered with Walmart to sell physical products related to its NFT line. Most recently, they announced they would be coming to Target with penguin toys and collectibles. Pudgy Penguins is known for its successful customer expansion strategy, not only in the NFT market, but also in other traditional markets.
Another example is Crypto Punk, which was the first major NFT series in the NFT market and is still growing strongly and ahead of market reports. Due to its historical and avant-garde elements, cryptopunk has always maintained its value due to its rarity and traditional sense of art.
Cryptopunk is a historical collection
NFTs are in an independent development space
Despite the strong correlation between NFTs and ETH, the NFT market has maintained its value despite ETH price fluctuations. With ETH hitting all-time lows, the capitalization rates for NFTs and ETH differ significantly. This shows that the NFT market has developed independently. Through their participation, investors create a stable and confident market environment, demonstrating the ability to withstand external influences.
How can we prepare for the future of the NFT market?
Learn from the NFT market of the past and prepare for the future
It’s hard to resist the volatility of the NFT market in the past two years. Against this backdrop of chaos, NFTs clearly demonstrate their utility and value. The NFT market has evolved from focusing on speculative factors to one that emphasizes practical applications and demonstrable value. This also helps investors have a more realistic, objective and profound view when choosing investment portfolios.
Learn from the NFT market of the past and prepare for the future
From the perspective of the investor community, NFTs are no longer worthless collectibles or fads. With a clear vision, NFT will soon become a bridge between the physical and digital worlds, paving the way for a multi-dimensional experience space and endless customer participation.
Grasp the trends and enter the NFT market in a timely manner
The above evidence and signals indicate that NFT is not dead. With the development of artificial intelligence and dense media sharing platforms, NFTs have transcended the limitations of creative art and collections. Intrinsic value is not market support or speculation. By complementing and coexisting in investment and real economic markets, NFTs are laying a solid foundation for themselves.
Grasp the trends and enter the NFT market in a timely manner
During the Bitcoin bull run in early 2024, the NFT market is expected to return due to its relevance to blockchain. Starting from a fever, the NFT market is now stable and successfully “immune”. Creators and project owners have done a great job of creating value for NFTs in the real world by expanding their visibility, tangibility, and trust.
in conclusion
For unknown reasons, NFT has not yet entered the FOMO stage. The market itself is independent and stable and mature; it is not dead. As the vast and diverse space of artificial intelligence and blockchain technology continues to evolve, NFTs have become a powerful tool for identifying the authenticity and ownership of materials. NFT has great application potential in education, health, life, medicine, law and other fields. This is the main factor that will enable the NFT market to expand and become active in the future.
