NFT has been the talk of the town for a multitude of reasons. While Beeple made history by selling the artwork, Everydays: The First 5000 Days, for a whopping sum of $69 million, Collins Dictionary judged it as the Word of the Year. NFTs are digital signatures encrypted into a digital work such as a painting which can then be bought using cryptocurrencies. With its fair share of advantages, NFT has been making rounds recently and the number of its investors has hiked immensely.
A wide variety of collectables can be bought using NFTs - from digital artworks to games and music, there are countless choices and no lengthy processes to get things done. NFTs have been foraying into pretty much every possible arena including the biggest of them all, Metaverse. Metaverse refers to the virtual world, where people can come together from various corners of the world and interact with each other, play games, build things etc.
Metaverse that uses cryptocurrency technology has seen a surge in popularity. Traditional cryptocurrencies, such as Bitcoin, were outperformed by tokens used for NFTs recently. With an estimated $43 billion revenue worldwide and a daily trade of $3 billion, it should come as no surprise.
This looks promising when you take into account its possible long term benefits. The rise and increasing popularity of Metaverse will fuel a hike in the in-game purchases and this would be met by NFTs. With renowned celebrities like Snoop Dogg joining exclusive communities in NFTs, people would develop a more confident outlook.
But with every rise comes a fall, and one should be well aware of the trends before making an informed decision (if you want to learn how to invest in NFTs, contact First Page). While for the most part, NFTs have seen massive sales figures, things did take a fall in November, with sales dropping by 28.79%, as per the data from nonfungible.com. In terms of the US dollar value, the plunge has not been the same, though. The value was only down by 16.73%.
Even then, not all NFT marketplaces have experienced the dip. NFT giant OpenSea dropped by nearly 30% while the blockchain-based game Axie Infinity soared with an increase of over 40%. Even though the downfall in markets such as OpenSea has been referred to by some as a serious dip, this was also followed by a drop in the active wallets in the market, as suggested by NonFungible. But is it too early to confirm that this downfall will cause permanent damages?
First and foremost, not all mysteries regarding NFTs have been unveiled. Any sector would witness rise and fall, and provided not all NFT markets experienced the dip, this could just be a little slump before another rise. With proper regards to possible legal hindrances and trends, NFTs market prospects would promise growth.
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