Nonfungible Tokens (NFTs) on a Steady Growth Path, according to Crypto Experts
Summary:
The article discusses sustained growth in the nonfungible token (NFT) market in the weeks leading up to November. Despite not matching the 2021 peak, experts foresee a continued upward trend. Executives from SuperRare and CoinW stress the transformative impact of NFTs on digital and physical asset management, highlighting their potential in various sectors. However, they also warn of challenges like regulation, environmental impact, and security concerns. Enjin's CFO highlighted NFTs' distinct identity from crypto, with many investors engaging in NFTs and possibly expanding into other crypto platforms.
Data concerning nonfungible token (NFT) indicated a steady rise in weekly sales during the weeks prior to November. Even though the current volume doesn't match the peak experienced in 2021, industry authorities predict a continued upward surge. As of November 6, Nansen, a blockchain analytics firm reported that the NFT sales volume jumped from $56 million for the week ending October 9 to $129 million in the week closing on November 6.
Jonathan Perkins, SuperRare’s NFT marketplace co-founder, anticipates this trajectory to persist in the ensuing months. He is optimistic about an imminent rise, citing the worst market phase is over. In his view, the previous NFT market leading to a downturn was solely a sentiment-driven phenomenon. He said nothing fundamentally flawed about NFT's over the past 18 months. According to him, NFTs introduce a discernible origin and proprietary rights to digital entities, hence triggering an online creator economy with potential for substantial growth. Perkins is confident that NFTs will significantly affect the online economy in the long-run, reaching volumes higher than the previous cycle.
Sonia Shaw, CoinW digital asset exchange's partner and vice president of partnership, notes that the recent NFT sales growth signifies a far-reaching and profound interest extending beyond art and collectibles. To her, NFTs have revolutionized the management of digital and physical assets. She emphasized that NFT use cases have the potential to radically alter sectors such as identity management, real estate, healthcare, finance, and supply chain logistics. While optimistic about NFTs in enhancing digital ownership, Shaw urges awareness of the challenges, including regulatory aspects, environmental impact, and security issues.
Also aligning with these views is Oscar Franklin Tan, Enjin's NFT platform's CFO, who remarked NFTs as a unique digital asset class, distinct from crypto. Tan revealed that many investors who entered the digital asset space back in 2021 were mainly attracted to NFTs. He also specified that NFT communities like the Bored Ape Yacht Club (BAYC) and Azuki have solidly held up despite the bear market. As more investors plunge into crypto, they may also venture into NFTs due to increased interest in Bitcoin and Ethereum, expanding into leading NFTs and new collections, including gaming NFTs.
Published At
11/14/2023 9:35:22 AM
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