Key facts:
Analysts do not deny the importance of the metaverse in the resurgence of the NFT industry.
The high transaction fees in the face of Ethereum congestion is the great challenge of the ecosystem.
Although the market for non-fungible tokens (NFTs) has seen a sharp drop in sales since September last year, it is expected to pick up a new momentum soon. Analysts at least believe that the collectible token industry will again mobilize more than USD 3 billion by the end of this year and will grow 35% annually to move more than USD 13 billion by 2027.
Forecasts on the NFT market indicate that corporations, the metaverse and communities growing around blockchain gaming will play a key role in the development and growth of the industry. This, according to a report published by the research company MarketsandMarkets.
From what the study mentions, there is no doubt that other projects similar to the Bored Ape Yacht Club (BAYC) or CryptoPunks will continue to emergeamong other initiatives that are gaining popularity thanks to celebrities.
Precisely, the growing influence of celebrities is one of the main elements that analysts consider key for NFT projects to gain momentum. And although they do not mention it directly, they suggest the effectiveness of strategies such as that of Yuga Labs, the creators of BAYCwhich focus on celebrity recruitment.
NFTs from the Bored Ape Yacht Club collection are the new sensation among celebrities. famous as american rapper Eminemthe tennis star Serena Williamsretired NBA player Shaquille O’Neal Y Justin Bieberhave at least bought one NFT from the Bored Ape Yacht Club collection.
Apparently, non-fungible tokens are a way to express the social position that an individual occupies within a society or in a social group of people who interact in the digital ecosystem.
fashion and in turn the rise of more metaverses, along with the blockchain-based gaming industrywill be elements that will be combined from now on so that the demand for NFTs picks up momentum again, analysts detail.
As this happens, opportunities will also arise, increasingly lucrative for owners of collectible tokens, they say.
Greening the NFT Field as Bored Ape Remains at the Forefront
In their report, MarketsandMarkets analysts agree with researchers from the NonFungible data site. As they state, the drop in sales of the NFT market does not show that the industry is dyingbut rather unsound projects, based more on speculation, have disappeared.
In this sense, for the NonFungible team, far from being dead, the NFT market is becoming healthier and will therefore re-emerge with new energy, as CriptoNoticias reported last month.
Both reports also agree that play to earn projects will play a determining role in the revival of the NFT ecosystem. They will do it hand in hand with proposals similar to those of Axie Infinity and Splinter lands, which encourage players to generate income while playing.
Also on these platforms, gamers generate rare assets in NFTthey play with them, and they can also buy or sell them, which gives a boost to the trade of these collectibles.
In that sense, analysts see the metaverses as the greatest opportunity that the future market of NFTs may have. Although many are just under construction, they are developing rapidly and will soon become large centers where users interact with their unique and collectible assets, they add in the document.
MarketsandMarkets believes that the different use cases that NFTs will have in the metaverses that are being created will be key to reaching the next level of adoption that these assets will have in the world.
For example, in 2019, an NFT-based token was used as a ticket to an event in New York. After the success of this event, many others began using NFTs as entry tickets, fueling the adoption of non-fungible tpkens in the metaverse. With major players such as Meta and Microsoft among others, investment in metaverse projects is focused on introducing massive transformations to online interaction.
Report by research firm MarketsandMarkets on the NFT market.
The MarketsandMarkets report warns of the great challenge facing the NFT market, as most of the projects are based on the Ethereum blockchain. Therefore, transactions are subject to high fees set by heavy network congestion.
Precisely the sale of virtual lands of the Otherside metaverse of the NFT Bored Ape collection collapsed the Ethereum network with high transaction fees. Even these were so high that many paid more than USD 14,000, double the value of one of the digital lands of the project, which at that time was USD 7,000.
Subsequently, the community expressed disappointment on Twitter with falling prices and interest around NFT land.
Those who participated in the frantic purchases of last Saturday, April 30, have not found the precise formulas to obtain short-term profits with their products in the secondary market. Without a doubt, it is an experience that is presented to analyze for the future, because with a new emergence of the NFT market, surely many will get stuck in the network again, if they are based on Ethereum.