Will NFT culture survive or will the bubble burst?
NFTs or Non-fungible tokens are one of the most recent digital enhancements of Blockchain. It is an amazing way to have digital assets with you that can create a lot of value when scarcity increases. Moreover, the basic idea of an NFT is to bring back the collectible culture into a digital and much more secure format. Whenever we mint an NFT we assure that it is the original piece and attach it to the blockchain. Now whenever this original piece is shared with others, the popularity of the same increases. The NFT owner or the artist who creates it has the certification or proof that this particular piece belongs to him.
NFTs have been growing at an immense pace in recent times. There have been more and more artists who are understanding this technology and leveraging it for the best use case possible. Moreover, the popularity of cryptocurrency has given it an extra push since these are based on Blockchain and can be sold via Cryptocurrency too. NFTs are providing an extra hand to all the efforts of artists and everyone who designs stuff. Blockchain is a technology that is here to stay, we all have understood this so far. Everything that is built for the future and is sustainable for now will survive too.
Furthermore, the year on year growth might have reduced a little since the start of the NFT culture. This is due to the massive hype in the subject area in 2019/2020 when NFTs of memes were selling for millions of dollars. This added a huge chunk of value to the overall valuation of the whole NFT culture. The good news here is that there is an increase in the business models in the whole NFT community.
What does the future look like?
The NFT is growing with a pace of 187.28% CAGR. This is commendable as the term started flashing only in the past two years. Big corporations are taking entries in the upcoming boom for the NFT culture. This proves that this isn’t a bubble, the growth hasn’t even started yet.
NFTs can change the way of the whole entertainment industry, memorabilias and collection enthusiasts. It is easy to store, secured and attached to the technology of the future ie Blockchain. Fans can now have their favorite artists collection in the form of NFT. This will make sure their piece is authentic and is dear to them personally. There is proof of certification attached to it as it is minted on Blockchain. NFT drops are the newest way through which artists sell or auction their work.
It is just getting started?
Reports suggested that only 40% of the Americans are aware about what an NFT is and over 20% know what the term means. The culture has not even been adopted completely yet, so there is a lot of potential growth that is still there. Artists are still experimenting with the whole NFT community. Those who adopt it early will definitely have the early mover advantage in the technology of the future.
Artists can auction their NFT while putting it in the blockchain. Moreover, this whole community is not limited only towards art or paintings. Anything and everything can be minted to an NFT. An amazing example of this was portrayed when an NFT of the voice note wavelength was sold for a whooping 6000 US Dollars. People can be creative and can understand the technology to use it fairly.
Furthermore, the NFT space as of now is based on the Ethereum blockchain. ETH is one of the fastest, most secure and widest spread Blockchain in the whole world. When this technology is providing juice to something, it is very definite that it will grow by great margins. The time is still right to educate yourself about the trend, the technology and the community in general. Lastly, the best way to be a part of this NFT space is to listen closely to what people are saying about it, how are people adopting it and how the growth seems so far. If we are able to answer these questions at any point of time. NFT will sound much better investment than anything physical.