Expert Views on NFTs: Evolving, Maturing, Not Dying
Summary:
Following an initial boom and subsequent decline in trading volumes, crypto enthusiasts have questioned the viability of non-fungible tokens (NFTs). However, blockchain experts and CEOs believe NFTs are not dying but maturing. They argue these tokens are evolving beyond collectibles into practical tools for digital ownership and utility. As the market matures, they predict more innovative applications, broader adoption, and increased institutional investment. The tokenization of real-world assets and proof of ownership are highlighted as two of the most effective uses for NFTs.
The narrative of non-fungible tokens (NFTs) continues to unfold. After a period of dramatic expansion and subsequent fall in trading volumes, certain crypto enthusiasts are questioning the ongoing viability of digital collectibles. Industry insiders however view this differently, refuting claims of NFT's demise and believe instead that the market is entering a phase of maturity. With the initial euphoria settling, the more practical and sustainable uses of NFTs are shining through.
Professionals in the blockchain industry were asked for their opinions on the current state of NFTs. Anoir Houmou, founder and CEO of Sui-endorsed video engagement platform RECRD, states that the 'NFTs are dead' claim is an "oversimplification", given every novel technology goes through cycles of correction. Houmou elucidated, “Recent trends indicate a maturing of the market after the explosive growth witnessed over the last few years. We’re moving into a phase where the focus is on sustainability, real-world utility, and integration into broader technological ecosystems.” The executive also noted a promising trend towards the surge of new SocialFi and GameFi platforms that pave the way for institutional investment in NFTs, which are becoming more purpose-driven.
While NFT trading volumes have indeed declined, Yale ReiSoleil, CEO and co-founder of NFT trading platform Untrading, argues that this is rather a natural correction of the market instead of a death sentence. ReiSoleil stated: "NFT volumes are down significantly, but that doesn't necessarily mean they're dead. The market is likely correcting after a period of hype.” Similarly, Oh Thongsrinoon, Chief marketing officer at Altava Group, which links luxury brands with Web3, agreed and stressed the healthy growth in tokenization of real-world assets.
In the face of claims regarding NFTs' demise, Toshiuki Otsuka, founder of the snap-to-earn platform SNPIT, categorically denied it. Otsuka stated: "Absolutely not. NFTs are evolving beyond collectibles into tools for digital ownership and utility. Market corrections are normal and signal maturation.”Otsuka further opined that NFT technology boasts enormous potential across various sectors, with numerous innovative and practical applications projected to appear as the technology evolves.
Meanwhile, Houmou also suggested that NFTs are graduating from their "early stages", as developers start to explore novel and creative uses for them. He emphasized NFTs' transformative potential across industries, including the $250 billion creator economy, due to their transparency, safety, and novel revenue models. Thongsrinoon also highlighted the tokenization of real-world assets and proof of ownership as the two most effective uses of NFTs, asserting that integrating real-world value into NFTs creates tangible trust. He emphasized that NFT technology provides a sound and immutable smart contract for various applications, including real estate and government bonds, among others.
Published At
6/27/2024 2:24:44 PM
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